Hut 8 Shares Climb After Securing $9.8 Billion AI Data Center Lease in Texas

Shares of Hut 8 Corp. (HUT) rose approximately 6% in pre-market trading on Monday after the company announced it secured a second major lease at its Beacon Point data center campus in Nueces County, Texas. The new 15-year agreement with an existing high-investment-grade tenant is valued at $9.8 billion over its base term.

Deal Details

The agreement leases 352 megawatts (MW) of IT capacity, doubling the tenant's commitment at the site to a total of 704 MW. According to Hut 8, this transaction completes the commercialization of the Beacon Point campus against its 1,000 MW of secured utility capacity.

The lease is structured as a triple net lease with terms similar to the initial Phase 1 agreement, the company stated. The new facility will be an artificial intelligence data center designed to NVIDIA’s DSX reference architecture. The contract also includes a 3.0% annual base rent escalator.

Financial Implications

The second lease brings the total base-term contract value for the entire Beacon Point campus to $19.6 billion. Hut 8 provided the following financial projections based on the agreement:

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• The Phase 2 lease is expected to generate a cumulative net operating income (NOI) of $9.8 billion over the 15-year base term.
• This equates to an average annual NOI of $655 million from the second phase upon stabilization.
• The total average annual NOI for the fully leased 1,000 MW campus is projected to be $1.31 billion.

Each of the two leases includes three 5-year renewal options. If the tenant exercises all options, the potential campus-level contract value could increase to $50.2 billion, according to the company's announcement.

Project Timeline and Context

This deal underscores the significant demand for large-scale data center capacity to support the growing AI industry. Hut 8 confirmed that site preparation is already underway for the second facility, with long-lead critical equipment procured.

The company maintained its previously announced timeline, with initial energization for the campus scheduled for the first quarter of 2027. The initial delivery of the Phase 2 data hall is expected in the second quarter of 2028.