Hut 8 Secures $9.8B AI Data Center Lease, Fully Commercializes Texas Campus
Hut 8 Corp. has signed a second 15-year, $9.8 billion lease for its Beacon Point data center campus in Texas, fully commercializing the site’s 1-gigawatt power capacity as demand for artificial intelligence infrastructure continues to accelerate.
The agreement covers 352 megawatts (MW) of IT capacity and was executed with the same investment-grade tenant that signed the campus’s first lease. The latest transaction doubles the customer’s contracted footprint at Beacon Point to 704 MW, while bringing the campus’s cumulative base-term contract value to $19.6 billion.
Located in Nueces County, Texas, the campus is supported by 1,000 MW of utility capacity secured through an interconnection agreement with AEP Texas. Hut 8 said the second phase will deliver an AI factory designed around NVIDIA’s DSX reference architecture, with the initial data hall expected to come online in the second quarter of 2028.
The triple-net lease is expected to generate approximately $9.8 billion in cumulative net operating income (NOI) over the initial 15-year term, or roughly $655 million annually once stabilized. Across the entire Beacon Point campus, projected annual NOI rises to approximately $1.31 billion.
The leases also include three five-year renewal options, increasing the potential contract value for the campus to $50.2 billion if all extensions are exercised.
“The real test of our power-first approach is what our partners are willing to commit against it,” said Asher Genoot, chief executive officer of Hut 8. “Our tenant at Beacon Point chose to double its footprint at the site, the strongest validation an asset can receive.”
Following the transaction, Hut 8’s AI data center portfolio totals 949 MW of contracted IT capacity, including 704 MW at Beacon Point and 245 MW at its River Bend campus. The company said its portfolio now carries a cumulative $26.6 billion in contracted base-term revenue and is expected to generate more than $1.75 billion in average annual NOI, with 100% of leased capacity backed by investment-grade counterparties.
Pictured: Rendering of Beacon Point data center campus in Nueces County, Texas