Reportedly, Nvidia (NVDA.US) signs $50 billion Texas data center lease, potentially paving the way for AI computing power expansion

According to Odaily, industry sources report that NVIDIA (NVDA.US) has signed a 15-year lease commitment for a data center in Texas, with a contract value of approximately $19.6 billion; if the renewal options are exercised, the total value over a 30-year lease could reach $50 billion.

The facility is being developed by Hut 8, with a planned capacity of 1 gigawatt (GW). It will deploy hundreds of thousands of NVIDIA graphics processing units (GPUs), and power supply guarantees have already been secured.

Last week, Hut 8 disclosed that its Beacon Point campus in Nueces County, Texas, will have a contract value of $19.6 billion during the basic 15-year lease term (including a 3.0% annual rent escalation clause). If the client exercises all renewal options, the total value over 30 years will rise to $50.2 billion. At that time, Hut 8 did not reveal the tenant's identity, only stating it was an "existing investment-grade client" who would install computing equipment on the site to support large-scale AI training and operations.

Industry sources have since confirmed that the tenant is NVIDIA. Hut 8, originally a bitcoin mining company, has since pivoted towards AI data center development. The campus is designed according to NVIDIA’s DSX AI factory reference architecture, specifically built for gigawatt-level AI infrastructure. On July 20, Hut 8 announced that the Beacon Point campus was fully commercialized and available for lease.

This lease marks a major strategic shift for NVIDIA—from being solely a chip vendor to taking direct control of the physical infrastructure where its chips operate.

A source familiar with NVIDIA’s strategy stated: “The scale of this commitment reflects the structural demand for AI computing we see among our customer base.” A NVIDIA spokesperson responded that the company is “working with ecosystem partners to accelerate the deployment of efficient AI infrastructure through the DSX AI Factory architecture.”

The report also noted that once the project is completed, NVIDIA may sublease part of the data center’s capacity to its “Neocloud” partners—companies who purchase NVIDIA GPUs to provide external AI cloud computing services.

Additionally, related reports indicate that this AI chip giant is reportedly in negotiations to provide OpenAI with approximately $250 billion in funding, as part of the latter’s large-scale data center project in Ohio.