Nvidia just locked in one of the largest data center deals ever. The company signed leases worth up to $50 billion for Hut 8’s Beacon Point AI data center campus in Nueces County, Texas, a facility designed to house hundreds of thousands of its own graphics processing units.
The deal spans two long-term leases covering 15 years, with a base contract value of $19.6 billion and renewal options that could push the total to $50 billion.
How the deal came together
Hut 8 first announced the commercialization of Beacon Point’s initial phase back on May 6, 2026, when it secured a $9.8 billion lease covering 352 megawatts of capacity. That first lease alone carried options that could have grown its value to $25.1 billion.
Then on July 20, 2026, a second lease doubled the contracted capacity to 704 megawatts. The Financial Times and Reuters reported the full scope of the arrangement on July 28.
Across Hut 8’s entire AI infrastructure portfolio, total contracted IT capacity now sits at 949 megawatts with a base contract value of $26.6 billion.
Hut 8 used what it calls a “power-first model,” securing a 1,000 megawatt utility interconnection through AEP Texas before the data center was even fully built.
Nvidia plans to sublease portions of the facility to hyperscalers and cloud service providers.
From crypto miner to AI landlord
Hut 8 started life as a Bitcoin miner. The company spent years building out power infrastructure and cooling systems to run crypto mining rigs 24/7. That operational expertise, securing cheap energy, managing heat, maintaining uptime, turns out to be exactly what AI data centers need.
Hut 8’s stock reflected the market’s enthusiasm. Shares gained significantly following both lease announcements. When your biggest customer is a company worth nearly $5 trillion, the revenue visibility improves considerably.