Story
CleanSpark Secures $6.6 Billion Data Center Lease, Shares Surge
Summary
The data center and power infrastructure company announced a 20-year lease with an unnamed technology firm for its Georgia campus, with options to extend the deal's total value to $11.6 billion.
CleanSpark Inc. (CLSK) shares jumped approximately 15% in pre-market trading Tuesday after the company announced a landmark 20-year infrastructure lease agreement valued at $6.6 billion. The deal, signed with an undisclosed global technology company, covers CleanSpark's data center campus in Sandersville, Georgia.
Details of the Agreement
The long-term lease is structured as a triple net agreement with annual escalators, according to the company's announcement. It is expected to generate an average annual net operating income (NOI) contribution of about $330 million for CleanSpark. The company estimates its landlord project costs will be between $10 million and $12 million per megawatt of critical IT load.
The agreement also includes two five-year extension options. If exercised, these options could increase the total contracted revenue to $11.6 billion over a 30-year period. The tenant plans to deploy production-grade infrastructure at the site to support a range of computing workloads.
Strategic Shift and Texas Expansion
AdMatt Schultz, CleanSpark's CEO and chairman, stated that the lease signifies a major transformation for the company. He noted it marks a move toward becoming a diversified digital infrastructure platform and begins the monetization of its power portfolio at an institutional scale.
In a related development, CleanSpark also signed a letter of intent and an exclusivity arrangement for its entire Texas portfolio with the same tenant. This portfolio includes:
- A total of 718 acres with up to 885 megawatts of secured and planned power capacity.
- The Sealy campus, spanning 271 acres with nearly 300 megawatts.
- The Brazoria campus, which covers 447 acres and supports an initial 300-megawatt demand load with potential to expand to 600 megawatts.
CleanSpark reported that Morgan Stanley & Co. LLC served as its financial advisor, with Davis Polk & Wardwell LLP providing legal counsel for the transaction.
Read next
More on Stocks
CFDA CEO Steven Kolb Resigns Following Physical Altercation with Protesters
Steven Kolb has stepped down as CEO of the Council of Fashion Designers of America after twenty years, following a widely publicized incident where he physically restrained animal rights activists at a New York Fashion Week show.
Anthropic Weighs New AI Model Release to Counter OpenAI Ahead of IPO, Sources Say
AI developer Anthropic is reportedly considering a new model launch to compete with OpenAI's recent success, a move that comes as the company prepares for an IPO and shortly after its CEO advocated for a slowdown in AI development.
Paramount, States Discuss CNN Oversight in Warner Bros. Merger Settlement Talks, Sources Say
Paramount and a dozen states are reportedly discussing a settlement to clear its $110 billion acquisition of Warner Bros. Discovery, with potential terms including independent monitoring of CNN and a commitment to theatrical film releases.
Trump Administration Extends H-1B Visa Restrictions for Another Year
The White House has extended restrictions on the H-1B non-immigrant visa program, continuing a policy that limits the ability of U.S. companies to hire skilled foreign workers.