NVIDIA Signs $50 Billion Texas Data Center Lease

According to people familiar with the matter, NVIDIA has signed a massive data center lease agreement in Texas worth up to $50 billion, highlighting the chipmaker’s growing role in financing and accelerating the expansion of global AI infrastructure.

The nearly $5 trillion company has reportedly committed to leasing an entire 1-gigawatt data center facility being developed by infrastructure company Hut 8. The site is expected to host hundreds of thousands of NVIDIA graphics processing units (GPUs) to support large-scale artificial intelligence workloads.

The move represents the latest step in NVIDIA CEO Jensen Huang’s strategy to leverage the company’s financial strength and maintain a central position in the rapidly expanding AI computing market. Beyond supplying advanced AI chips, NVIDIA has increasingly become involved in building the infrastructure ecosystem required to deploy its GPUs at scale.

In recent years, NVIDIA has invested billions of dollars to support emerging AI infrastructure providers, including companies such as CoreWeave, enabling them to purchase NVIDIA GPUs and operate AI cloud computing platforms. The Texas data center project takes this approach further by allowing NVIDIA to directly support the facilities where its chips will be deployed.

The Texas project has already secured access to power capacity, which has become an increasingly valuable resource as data center operators compete for limited electricity supplies to support AI computing growth. An executive familiar with the project said NVIDIA’s financial strength helped secure the deployment of its AI hardware at the facility.

“They have the balance sheet to secure power capacity and ensure their products can be deployed,” the executive said.

Once completed, NVIDIA may lease computing capacity from the facility to its “new cloud” partners, which purchase NVIDIA GPUs and provide AI cloud computing services to customers.

According to Hut 8’s disclosures, NVIDIA’s 15-year lease commitment for the Texas data center project is valued at approximately $19.6 billion. With renewal options included, the total contract value could reach around $50 billion over 30 years.

The agreement has also become a key factor enabling Hut 8 to secure lower-cost financing for the project. In June, Hut 8 issued approximately $4.3 billion in bonds at an interest rate of 6.129% to support the first phase of construction. Backed by NVIDIA’s long-term lease commitment, the bonds received an investment-grade rating from Moody’s and were priced about 100 basis points above NVIDIA’s own 30-year debt.

NVIDIA’s latest quarterly report showed that unpaid commitments for future data center leases totaled $32.4 billion, primarily related to research and development activities, significantly higher than the $7.4 billion reported during the same period last year. The company’s $9.8 billion Beacon Point Phase 1 lease signed in March accounts for nearly one-third of this amount.

Sources also revealed that NVIDIA is in discussions to provide a $250 billion guarantee for OpenAI, helping the AI company lease a 10-gigawatt data center facility being developed by SoftBank in Ohio.

As demand for AI computing continues to surge, NVIDIA’s expanding involvement in data center financing, power acquisition, and infrastructure development demonstrates how semiconductor companies are becoming increasingly integrated into the broader AI ecosystem beyond chip manufacturing.