Hut 8 Secures $9.8B AI Data Center Lease, Fully Commercializing Texas Campus

Hut 8, a company that has transitioned from cryptocurrency mining to operating AI data centers, announced on Monday it has signed a second 15-year lease valued at $9.8 billion with an existing investment-grade customer. The agreement fully commercializes the company's 1-gigawatt Beacon Point campus in Texas, according to a company statement.

Following the news, shares of Hut 8 rose approximately 5% in premarket trading. The stock has nearly doubled in value year-to-date.

Agreement Details

The new agreement covers 352 megawatts (MW) of IT capacity. This doubles the unnamed tenant’s total contracted footprint at the Beacon Point campus to 704 MW, effectively leasing the site's entire capacity.

Hut 8 reported the campus now has a total base-term contract value of $19.6 billion over 15 years. The company noted this value could increase to as much as $50.2 billion if the customer exercises all renewal options.

Strategic Pivot to AI

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This deal underscores Hut 8's successful pivot from its origins in bitcoin mining to serving the high-demand AI infrastructure market. The company is leveraging its existing power assets and data center expertise, originally developed for cryptocurrency operations, to cater to the compute-intensive needs of AI clients.

The broader market context is a surge in demand for data center capacity, driven by the rapid expansion of generative AI services. This has shifted competition in the tech sector from a primary focus on semiconductors to securing essential infrastructure, including power, transmission access, and construction-ready sites.

Expanded Portfolio

With this latest agreement, Hut 8's total contracted AI data center capacity across its entire portfolio has increased to 949 MW. The company stated this is supported by 1,330 MW of utility capacity and that the aggregate base-term contract value for its portfolio has reached $26.6 billion.

Hut 8 also noted that it had redesigned the first data hall at the Beacon Point campus specifically for Nvidia’s architecture, which increased its power capacity by 57% within the same physical footprint. The company expects to begin delivering the first data hall of the project's second phase in the second quarter of 2028.