Hut 8 Corp Secures $50B Data Center Lease With Nvidia

What happened

Hut 8 announced two long-term leases with Nvidia for its Beacon Point AI data center campus in Nueces County, Texas. The first lease, disclosed on May 6, 2026, covered 352 megawatts of capacity with a $9.8 billion base value. A second lease on July 20, 2026, doubled the contracted capacity to 704 megawatts. The combined base contract value stands at $19.6 billion over 15 years, with renewal options potentially increasing the total to $50.2 billion. The facility is designed to house hundreds of thousands of Nvidia GPUs and will operate under Nvidia's DSX AI factory architecture. Nvidia plans to sublease portions of the campus to hyperscalers and cloud service providers. Hut 8 secured the deal using its power-first model, obtaining a 1,000 megawatt utility interconnection through AEP Texas before completing construction.

Why it matters

This agreement provides Hut 8 with exceptional revenue visibility from a $5 trillion tech company and validates the company's strategic pivot from cryptocurrency mining to AI infrastructure. The lease brings Hut 8's total contracted IT capacity across its AI portfolio to 949 megawatts with a combined base contract value of $26.6 billion. The deal demonstrates how Hut 8's operational expertise in securing power, managing cooling systems, and maintaining uptime for crypto mining rigs directly translates to meeting the infrastructure demands of large-scale AI training facilities. For investors, the 15-year contract term and investment-grade counterparty significantly de-risk future cash flows.

Bigger picture

The lease represents one of the largest data center deals ever signed and reflects a broader shift in the AI infrastructure market. Nvidia's move beyond selling chips to controlling and operating the infrastructure where its GPUs run signals the company's expanding role across the AI value chain. The arrangement also highlights growing demand for purpose-built AI data centers with massive power capacity, as hyperscalers and cloud providers race to secure computing resources for AI training and inference workloads. Hut 8's success in repurposing crypto mining infrastructure for AI applications may serve as a blueprint for other companies with similar operational capabilities and power access.

What to watch

Investors should monitor whether Hut 8 successfully completes construction and brings the full 1-gigawatt capacity online on schedule. Key milestones include lease commencement dates, revenue recognition timing, and any additional capacity expansions beyond the initial phases. Whether Nvidia exercises its renewal options after the base 15-year term will significantly impact the deal's ultimate value. Updates on sublease arrangements with hyperscalers and cloud providers will provide insight into demand for Nvidia's DSX architecture. Finally, watch for any announcements regarding additional phases at Beacon Point or new data center projects that could further expand Hut 8's contracted capacity and revenue base.