Nvidia Reportedly Behind Hut 8's $19.6 Billion AI Data Center Lease
The Financial Times has identified Nvidia (NASDAQ:NVDA) as the unnamed tenant behind Hut 8 Corp.'s (NASDAQ:HUT) Beacon Point data center leases in Texas, according to sources familiar with the arrangement. The two 15-year leases for a total of 704 megawatts of IT capacity give the project a base-term contract value of $19.6 billion. While neither company has confirmed the identity of the tenant, this lease is critical to Hut 8’s financing and credit case. Hut 8 secured $4.25 billion in non-recourse senior secured notes for Beacon Point earlier this year and plans to begin construction on its first Phase 2 data hall by Q2 2028. The project faces challenges including tenant concentration, timely execution of development, and financing demands. Nvidia's involvement could also allow it to sublease the site to partners using its GPUs for AI computing services, though no such arrangement has been announced yet.
Topics: AI infrastructure data center leases Nvidia partnerships