Hut 8 Deepens AI Infrastructure Push With Landmark Texas Agreement

TL;DR:

• The 15-year lease contract has a base value of $9.8 billion and covers 352 megawatts of IT capacity.
• The corporate client doubled its previous allocation at the Beacon Point campus, reaching a total contracted capacity of 704 megawatts.
• The first data hall in the center’s second phase will operate under Nvidia architecture, with deliveries scheduled for the second quarter of 2028.

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Hut 8 signed a 15-year lease agreement valued at $9.8 billion to fill the total capacity of its Beacon Point campus in Texas. The announcement drove a nearly 5% increase in the company’s shares during pre-market trading.

The new commitment involves managing 352 megawatts of compute capacity within the data center. Data from Hut 8 indicates that the entire 1,000 megawatts projected for the Beacon Point facility has now been fully commercialized under long-term contracts.

The tenant is an investment-grade corporate firm that already had existing operations at the site. Company figures indicate that this counterparty doubled its scope, bringing its total contracted capacity at the facility to 704 megawatts.

The restructuring of the first data hall was developed using Nvidia’s technological infrastructure. According to corporate reports, the optimization yielded a 57% capacity increase using the same footprint and existing power grid connection.

The cumulative contractual value of the Beacon Point campus rose to $19.6 billion. The firm’s financial reports estimate that this figure could reach $50.2 billion if the client exercises all three five-year renewal options stipulated in the contract.

Strategic transition toward artificial intelligence processing

The company’s global AI portfolio totals 949 contracted megawatts, backed by a 1,330-megawatt power infrastructure. According to Hut 8‘s report, the combined base value of these assets reaches $26.6 billion, generating an estimated average annual net operating income exceeding $1.75 billion.

The company originated its operations in Bitcoin mining before diversifying its business model. Industry reports suggest that power supply constraints and high demand for computing power incentivized multiple mining operators to redirect their facilities toward artificial intelligence services.

The initial phase of the first data hall for this second stage is scheduled for delivery in the second quarter of 2028, with initial site energization projected for the first quarter of 2027.