Nvidia reportedly plans to lease large US data center

Nvidia plans to lease a data center in Storey County, Nevada, financed by a US$3.8 billion junk-bond sale, according to sources familiar with the matter.

The bond issuance, backed by Tract Capital, was increased by US$150 million due to strong demand, with a yield targeting around 6%.

The data center, expected to have a capacity of 200 megawatts, is part of a broader trend where companies finance infrastructure projects through high-yield bonds.

The initial lease term is about 16 years, with Nvidia holding options for two additional 10-year extensions.

Tract Capital’s Fleet I fund, which owns the project, is expected to contribute around US$620 million in equity, with the debt proceeds reducing this amount.

JPMorgan Chase is leading the bond issuance, with Morgan Stanley as a co-manager.

The deal is expected to price on February 13.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Nvidia’s Nevada data center comes as Tract battles Switch in court

The data center site sits in Storey County, Nevada. Developer Tract has spent years in court against Switch Data Centers there 1.
Switch runs the Tahoe-Reno 1 campus, also called Citadel. It argued a land covenant barred competitors from building data centers except certain multi-tenant colocation facilities, where customers rent space and power in a shared building 1.
A judge ruled in 2025 that the covenant restriction, as written, applies to multi-tenant colocation facilities. It does not apply to single-tenant, wholesale, or cloud facilities built for one customer or large dedicated tenants 1.
The decision may matter for projects like Nvidia’s planned 200-megawatt data center lease. The bond and lease financing details come from other sources, so the lease should not be framed as caused by the court ruling based on the provided material 1.

AI hardware leaders are becoming their own infrastructure giants

Nvidia already leases capacity from cloud providers such as AWS and Azure. The new agreement moves it toward running long-term, dedicated infrastructure under a roughly 16-year lease.
Owning more control can shape facility design and steady operating costs for specialized AI hardware.
The project sits in Tract Capital’s Fleet I fund, which owns it. It also fits Fleet Data Centers, a platform built to develop large, customized, single-user campuses 2.
The approach gives AI chipmakers and AI model developers another path to secure physical capacity outside traditional cloud providers. That shift could change who holds leverage in tech infrastructure.