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

Hut 8 Signs $9.8 Billion Lease for AI Data Center Campus in Texas

Hut 8, an energy infrastructure company, has signed a 15-year, $9.8 billion lease agreement for its Beacon Point data center campus in Nueces County, Texas. The facility will serve a confidential client and support artificial intelligence training and inference workloads. Phase 1 will deliver 352 megawatts of IT capacity, with plans to expand to 1,000 megawatts across the full campus.

Water Management Sets the Project Apart

The facility uses a closed-loop cooling system that recirculates water through sealed pipes, addressing a major operational challenge for large data centers. Traditional facilities consume millions of gallons daily for cooling, straining local water supplies.

Beacon Point sources its initial water from outside Nueces County and the system lasts 4 to 7 years before needing replacement. Once filled, the same water circulates continuously with no additional draw from local supplies.

The only ongoing municipal water use covers basic facility needs-restrooms and sinks-at approximately 10,000 gallons per day per phase. A small restaurant uses roughly the same amount.

Economic Impact and Job Creation

Phase 1 represents about $8.5 billion in investment and will create 945 construction jobs and 115 permanent operations positions. A planned second phase would add another $8.5 billion in investment with comparable job creation.

The campus spans 525 acres with room for future expansion. Hut 8 pre-funded all necessary infrastructure, meaning the project will not raise residential electricity rates.

Operations and Community Considerations

The facility is designed for minimal noise disruption. Construction traffic will follow county guidelines, and ongoing vehicle traffic once operational will be minimal.

For operations professionals evaluating large-scale infrastructure projects, this campus demonstrates how data center design addresses resource constraints and community impact. Learn more about AI for Operations and how infrastructure decisions affect facility management and logistics.

Operations managers overseeing similar projects may benefit from understanding the technical and planning considerations involved. Explore the AI Learning Path for Operations Managers.