NVIDIA signed a 15-year lease with Hut8 for a 1-gigawatt Texas data center, with the contract valued at $19.6 billion initially and potentially $50 billion over 30 years if renewed, Financial Times reported. The facility will be subleased to NeoCloud after completion, and Hut8 issued $4.3 billion in bonds at 6.129% interest in June based on this lease. The deal has reignited circular financing concerns between AI chip manufacturers and customers following Wall Street Journal's report on NVIDIA's payment guarantee discussions for OpenAI's Ohio project.
NVIDIA Signs $50 Billion Texas Data Center Lease with Hut8
NVIDIA entered a long-term lease agreement with Hut8 for the entire 1-gigawatt data center under construction in Texas, according to Financial Times. The contract is valued at $19.6 billion for the initial 15-year term, with the potential to reach $50 billion (approximately 73 trillion won) over 30 years if renewed. The completed facility will be subleased to NeoCloud, a startup cloud service provider, to serve as an AI service hub. Hut8 issued $4.3 billion in corporate bonds at 6.129% interest in June based on this lease agreement. The transaction has intensified concerns about circular financing structures where funds flow between AI chip manufacturers and their customers, following Wall Street Journal's earlier report on NVIDIA's discussions to provide payment guarantees for OpenAI's Ohio project.
China Begins DUV Lithography Mass Production, KOSPI Drops 10.84%
Concerns that China's semiconductor technology independence may advance faster than expected spread through markets, with KOSPI closing at 6023.66 on May 28, down 732.09 points (10.84%) from the previous trading day. Reuters reported that Shanghai IC Electronics Technology Group, a Chinese state-owned enterprise, is leading mass production of immersion DUV (deep ultraviolet) lithography equipment, planning to supply 5 units this year and 20 units next year to customers including CXMT. Combined with NVIDIA's large-scale financial guarantees highlighting circular financing issues, semiconductor stocks took direct hits, with Samsung Electronics (005930) falling 13.39% and SK Hynix (000660) dropping 14.65%. Both KOSPI and KOSDAQ markets triggered sell-side cars and circuit breakers simultaneously for the third time this year, and KOSPI market capitalization evaporated by nearly 2000 trillion won in May alone.
South Korea Considers Texas LNG Power Plant Under US Investment Plan
The South Korean government is reviewing construction of an LNG (liquefied natural gas) combined-cycle power plant in Texas as the first project under its $200 billion US investment plan. US data center power demand is projected to surge to 426 terawatt-hours by 2030—double the previous year's level and accounting for 9% of total power demand—driven by AI data center expansion. While 42% of data center capacity is concentrated in Texas and Virginia, stable power supply remains difficult due to power plant shortages and transmission network bottlenecks. Solar and wind power cannot operate 24 hours, and nuclear plants require over 8 years to construct, making LNG generation the practical alternative. If South Korea signs power purchase agreements (PPAs) with US power-demanding companies, it can secure stable revenue, aligning both countries' interests.
FAQ
What did NVIDIA announce regarding the Texas data center lease?
NVIDIA signed a 15-year lease agreement with Hut8 for a 1-gigawatt data center in Texas, valued at $19.6 billion initially and potentially reaching $50 billion over 30 years if renewed, according to Financial Times.
Why did KOSPI fall sharply on May 28?
KOSPI dropped 732.09 points (10.84%) to close at 6023.66 on May 28 following Reuters reports that China's state-owned Shanghai IC Electronics Technology Group began mass production of immersion DUV lithography equipment, raising concerns about accelerated Chinese semiconductor technology independence.
What LNG project is South Korea considering in the United States?
The South Korean government is reviewing construction of an LNG combined-cycle power plant in Texas as the first project under its $200 billion US investment plan, aiming to address US data center power demand while securing stable revenue through power purchase agreements.
