Particle.news

Nvidia Reportedly Backs Hut 8’s $19.6 Billion Beacon Point Leases

The reported agreements would turn Hut 8’s Texas development into long‑duration lease revenue supported by large non‑recourse financing, hinging on on‑time construction plus heavy tenant concentration.

Overview

  • The Financial Times identified Nvidia as the likely undisclosed tenant for two 15‑year, take‑or‑pay leases that together cover 704 MW and carry a $19.6 billion base‑term value.
  • Hut 8 signed the first matching 352 MW lease on May 6 and disclosed the second around July 20, with both contracts requiring buildings built to Nvidia’s DSX reference architecture.
  • The project has secured major project financing, including $4.25 billion of non‑recourse senior secured notes closed in June, and Hut 8 expects the first Phase 2 data hall to be energized in Q2 2028.
  • Neither Nvidia nor Hut 8 have publicly confirmed the tenant identity or any sublease plan, and Nvidia has emphasized its DSX architecture without acknowledging tenancy.
  • Analysts warn that on‑schedule construction, cost control and the risk of relying on a single large tenant are the key near‑term variables that will determine whether the leases deliver the promised, long‑duration cash flows.