Hut 8 signs $9.8 billion lease for AI data center campus in Nueces County

Hut 8, an energy infrastructure company, has announced a significant 15-year, $9.8 billion lease agreement for its Beacon Point data center campus in Nueces County, Texas. The lease is with a confidential high-grade company for artificial intelligence operations and covers the first phase of what is projected to be a 1,000-megawatt facility, making it one of the largest data center campuses in the state. The initial phase will provide 352 megawatts of IT capacity for AI workloads. A key feature of the Beacon Point project is its innovative closed-loop cooling system, designed to drastically reduce water consumption compared to traditional data centers. This system circulates water sourced from outside Nueces County through sealed pipes, requiring replacement only every 4 to 7 years. Ongoing municipal water use will be minimal, limited to basic facility needs such as restrooms and sinks, an amount comparable to a small restaurant's daily usage. The project represents a major economic investment, with Phase 1 alone accounting for approximately $8.5 billion and generating an estimated 945 construction jobs and 115 permanent operational jobs. A potential second phase would inject an additional $8.5 billion and similar job creation. The total campus is planned to span 525 acres, allowing for future expansion. Hut 8 has also proactively addressed potential community concerns, stating that all necessary infrastructure has been pre-funded, and the project is not expected to impact residential electricity rates. The facility is designed for minimal noise disruption, and construction traffic will adhere to county guidelines, with little ongoing traffic once operational.