Hut 8, an energy infrastructure company, has announced a 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 and will power artificial intelligence operations at the site. The agreement covers the first phase of what will eventually become a 1,000-megawatt facility, making it one of the largest data center campuses in Texas.
The first phase will deliver 352 megawatts of IT capacity dedicated to AI training and inference workloads.
Closed-loop cooling system limits water use
One of the project's most notable features is its approach to water consumption. Traditional data centers can consume millions of gallons of water daily for cooling, placing significant strain on local water supplies. Beacon Point is designed to avoid that impact.
The facility uses a closed-loop cooling system that circulates water through sealed pipes. That water will be sourced from outside Nueces County and is expected to last 4 to 7 years before needing replacement, meaning the system is filled once and continues recirculating the same water.
The only ongoing municipal water consumption will be for basic facility needs such as restrooms and sinks — approximately 10,000 gallons per day per phase, comparable to what a small restaurant uses daily.
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Why This Matters
Traditional data centers can consume millions of gallons of water daily for cooling, putting strain on local water supplies. Hut 8's approach eliminates this concern by:
- Using a one-time water fill that lasts for years
- Sourcing initial water from outside the local area
- Limiting ongoing water use to basic human needs
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Major economic investment in the region
The project has a significant economic impact on the area. Phase 1 represents approximately $8.5 billion in investment and is expected to create 945 construction jobs and 115 permanent operations jobs. A second phase would bring an additional approximately $8.5 billion in investment, with similar job creation. The total campus footprint spans 525 acres with room for future expansion.
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Economic Impact
The project represents a massive investment in the region:
- Phase 1: ~$8.5 billion investment, 945 construction jobs, 115 permanent operations jobs
- Phase 2: Another ~$8.5 billion investment with similar job creation
- Total footprint: 525 acres with room for future expansion
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Addressing community concerns
Hut 8 has also moved to address common community concerns tied to large-scale infrastructure projects. The company pre-funded all necessary infrastructure, and the project is not expected to raise residential electricity rates. The facility is designed for minimal noise disruption, and construction traffic will follow county guidelines, with minimal ongoing traffic once the campus is operational.
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