Hut 8 inks $9.8bn AI lease to fully commercialize Texas site
Hut 8 has fully leased its 1-gigawatt Texas campus with a $9.8 billion contract, underscoring how power-ready sites are becoming the primary currency in the artificial intelligence infrastructure boom.
Hut 8 signed a second 15-year lease worth $9.8 billion with an existing investment-grade customer on Monday. The agreement covers 352 megawatts of IT capacity and fully commercializes the company’s 1-gigawatt Beacon Point campus in Texas. The deal effectively doubles the unnamed tenant’s total footprint at the site to 704 MW, locking down a massive power asset for the long term.
With this latest commitment, Beacon Point now carries a base-term contract value of $19.6 billion over its 15-year lifespan. If renewal options are eventually exercised, that figure could climb to $50.2 billion. Across its entire portfolio, Hut 8 now holds 949 MW of contracted AI data center capacity, supported by a broader 1,330 MW of utility capacity. The aggregate base-term contract value across this portfolio has reached $26.6 billion.
The transaction represents a significant milestone for companies attempting to transition from cryptocurrency mining to high-performance artificial intelligence infrastructure. During the crypto boom, miners built extensive power assets and data center expertise that are now highly sought after. Technology companies are committing hundreds of billions of dollars toward data centers packed with advanced chips, shifting the industry's primary bottleneck away from semiconductors. Electricity availability, transmission access and construction-ready sites have become the most critical constraints in the AI buildout.
Hut 8 was able to accommodate the tenant’s rapid expansion by redesigning the first data hall at Beacon Point specifically around Nvidia’s architecture. This engineering optimization increased the facility's capacity by 57 per cent without requiring additional land or expanded utility connections. The existing tenant subsequently decided to double its contracted space at the campus as a direct result of the improved layout.
For investors, the credit profile of these contracts is a crucial detail. Hut 8 noted that all of its contracted AI capacity is leased to, or backed by, investment-grade counterparties, which mitigates typical financing risks associated with large-scale infrastructure projects. The company expects to begin delivering the first Phase 2 data hall at Beacon Point in the second quarter of 2028, marking the start of the newly contracted revenue stream.
