Hut 8 secures $9.8 billion lease to fully commercialise Texas AI campus
The 15-year agreement doubles the tenant’s footprint at the 1-gigawatt Beacon Point site, bringing Hut 8’s total contracted portfolio value to $26.6 billion.
Hut 8, the artificial intelligence infrastructure provider that has pivoted from cryptocurrency mining, announced on July 20 that it has signed a second 15-year lease worth $9.8 billion with an existing investment-grade customer. The agreement fully commercialises the company’s 1-gigawatt Beacon Point campus in Texas, marking a significant milestone in its transition to serving the growing demand for compute power.
The new contract covers 352 megawatts of IT capacity, effectively doubling the unnamed tenant’s total footprint at the site to 704 megawatts. Hut 8 stated that the campus now holds a base-term contract value of $19.6 billion over 15 years, a figure that could rise to $50.2 billion if the tenant exercises renewal options. The company expects to begin delivering the first Phase 2 data hall in the second quarter of 2028.
Following the announcement, Hut 8 shares rose approximately 5% in premarket trading. The stock has nearly doubled in value this year, reflecting investor confidence in the company’s strategic shift. Like several former bitcoin miners, Hut 8 is leveraging its power assets and data centre expertise developed during the cryptocurrency boom to serve AI customers.
The broader industry context has shifted competition beyond semiconductors to power, transmission access, and construction-ready sites, making electricity availability one of the sector’s most significant constraints. Demand for compute infrastructure has accelerated since the launch of generative AI services, prompting technology companies to commit hundreds of billions of dollars toward data centres packed with advanced chips from Nvidia and others.
Hut 8 reported that total contracted AI data centre capacity across its portfolio has increased to 949 megawatts, backed by 1,330 megawatts of utility capacity. The aggregate base-term contract value for the portfolio has reached $26.6 billion. The company noted that all contracted capacity is leased to, or backed by, investment-grade counterparties.
To improve efficiency, Hut 8 redesigned the first data hall at Beacon Point around Nvidia’s architecture, increasing capacity by 57% within the same land and utility footprint. This technical adjustment prompted the existing tenant to double its contracted capacity at the campus, underscoring the value of optimised infrastructure in the current market.
