Nvidia (NVDA) signed leases worth up to $50 billion for the entire 1-gigawatt data center facility that Hut 8 (HUT) is building in Texas, the Financial Times reported Tuesday, citing five people familiar with the deal.

The facility will house hundreds of thousands of Nvidia graphics processing units, according to the report. The Texas site has already secured access to electricity, the report said.

Hut 8 (HUT) said last week it signed a second 15-year lease worth $9.8 billion for 352 megawatts of IT capacity at its Beacon Point data center campus in Texas, fully commercializing the site's 1-gigawatt utility capacity. The company said the base-term contract value for the full 1 gigawatt campus is $19.6 billion.

The report said renewal options could increase the total value to $50 billion over 30 years.

Once completed, Nvidia could sublease capacity to its "neocloud" partners that purchase its GPUs and sell AI cloud computing services, the report said.

Nvidia and Hut 8 did not immediately respond to requests for comment from MT Newswires.

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