Nvidia is financing a $50 billion lease arrangement for a massive new data center facility in Texas designed to run its own accelerator chips.

Nvidia has signed leases worth up to $50 billion for Hut 8's Beacon Point campus in Texas, according to the Financial Times, which cited five sources familiar with the arrangement.

Hut 8 previously announced that its 1-gigawatt data center facility carries a base-term contract value of $19.6 billion over 15 years, with the potential to reach $50.2 billion if renewal options are exercised. The company had initially withheld the tenant's identity, describing it only as an "existing investment-grade customer" that would install computing equipment at the site to support large-scale AI training and operations.

The scale of the deal underscores the intense competition for data center capacity to support artificial intelligence workloads. Nvidia could potentially sublease portions of the property to its "neocloud" partners—companies that purchase Nvidia GPUs and resell AI cloud computing services.

An Nvidia spokesperson acknowledged the company's infrastructure strategy without confirming the specific arrangement: "Nvidia is working with ecosystem partners to accelerate the deployment of efficient AI infrastructure through the DSX AI factory architecture." DSX is Nvidia's integrated framework for designing, building, and operating large-scale AI data centers, combining the company's technology with equipment from partner manufacturers.