Nvidia has signed leases worth up to $50 billion for Hut 8's Texas data center. The facility will use Nvidia's chips to support large-scale artificial intelligence operations.
The Financial Times reported the Nvidia-Hut 8 lease deal on Tuesday, citing five people familiar with the matter. Reuters could not immediately verify the report.
Hut 8's Beacon Point campus in Texas has a capacity of 1 gigawatt. The company stated that the site had a base-term contract value of $19.6 billion over 15 years.
The total value of the Beacon Point contract could rise to as much as $50.2 billion if renewal options are exercised. Hut 8 did not disclose the tenant at the time of its initial announcement.
The company described the tenant only as an existing investment-grade customer that would install computing equipment at the site. This infrastructure is intended to support large-scale AI training and operations.
Strategic deployment
Nvidia could sublease the property to its neocloud partners. These partners buy Nvidia GPUs and sell AI cloud computing services.
Nvidia CEO Jensen Huang is deploying the company's balance sheet to backstop growth of the AI computing market.
The spokesperson made this statement without confirming or denying the specific report. DSX is Nvidia's full-stack AI factory architecture designed to help design, build and run large-scale AI data centers.
The architecture brings together the company's technology with equipment from partner companies. Hut 8 did not respond to a request for comment outside business hours.