Nvidia Reportedly Leases Hut 8 Texas Data Center in $50B Deal
Nvidia has reportedly leased Hut 8's 1 GW Beacon Point data center campus in Texas under a 15-year agreement. The deal has a base value of $19.6 billion, which could scale up to $50.2 billion if renewal options are exercised. This massive lease highlights Nvidia's aggressive expansion into physical AI infrastructure to support its DSX AI Factory architecture. It also signals a strategy to sublease capacity to "Neocloud" partners, who provide GPU-as-a-Service to the broader AI ecosystem. While Hut 8 only disclosed the tenant as an unnamed "investment-grade customer," sources identified it as Nvidia, which plans to deploy computing equipment for large-scale AI training. Nvidia did not officially confirm the deal but emphasized its collaboration with partners on DSX AI Factory deployments.
## BACKGROUND
A "Neocloud" is a specialized cloud infrastructure provider that focuses primarily on offering GPU-as-a-Service (GPUaaS) for demanding AI workloads. Meanwhile, Nvidia's DSX platform is a full-stack AI factory architecture designed to co-design and optimize chips, networking, cooling, and software as unified systems rather than siloed components.