Hut 8 Jumps 14% on $9.8 Billion Lease to Fully Commercialize Texas AI Campus
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Key Takeaways
- Hut 8 signed a $9.8 billion, 15-year lease for 352 MW of IT capacity at its Texas campus.
- The deal completes the commercialization of the 1 GW Beacon Point site, totaling $19.6 billion in contract value.
- Total contracted IT capacity for Hut 8's AI portfolio has grown to 949 MW.
- Site energization is planned for Q1 2027, with Phase 2 data halls expected by Q2 2028.
Hut 8 (NASDAQ: HUT) Corp. (Nasdaq, TSX: HUT) announced the full commercialization of its Beacon Point AI data center campus located in Nueces County, Texas. This follows the execution of a second 15-year triple-net lease valued at $9.8 billion. The deal doubles the IT capacity footprint for the existing tenant, adding 352 megawatts (MW) to their previous commitment.
The same high-investment-grade entity from the first phase will now utilize a total of 704 MW at the facility. The campus leverages a 1,000 MW interconnection agreement with AEP Texas for power delivery. The infrastructure is being built according to NVIDIA’s DSX reference architecture, specifically designed for large-scale artificial intelligence operations.
Construction and site preparation are currently underway. Hut 8 expects to begin energizing the site in the first quarter of 2027, with the delivery of the first Phase 2 data halls slated for the second quarter of 2028.
With this expansion, Hut 8’s total contracted IT capacity across its AI portfolio reaches 949 MW, including the 245 MW River Bend site. The company’s total portfolio contract value now stands at $26.6 billion. Upon reaching stabilization, the Beacon Point campus is projected to generate an average annual net operating income of $1.31 billion, contributing to a total portfolio average of over $1.75 billion annually.
