NVIDIA is looking to expand its control over the AI market, moving from selling chips to directly operating massive infrastructure. The project reveals a new phase where the company wants to ensure that facilities are ready to host its processors instead of waiting for cloud computing companies to build them themselves.

15-year lease

According to a report by Reuters, NVIDIA has signed leases for Hut 8’s Beacon Point data center. The site is planned to have a capacity of 1 gigawatt and the basic value of the contract is around $20 billion over 15 years. The total value could exceed $50 billion if renewal options are exercised. Hut 8 did not previously disclose the name of the tenant, only stating that it was an existing client with an investment-grade credit rating.

Ready centers for chip customers

NVIDIA can sublease parts of the site to specialized cloud computing companies that buy its chips and sell training and operation services to clients. The center will support the DSX architecture, which combines NVIDIA technologies with equipment from partner companies. This model gives the company greater ability to accelerate data center deployment and ensure demand for its chips. However, it also puts it at greater financial and operational risk if global AI spending slows or the need for massive computing power decreases.