Hut 8 Closes $9.8B AI Data Center Lease in Texas

Major lease completes gigawatt-scale campus

Hut 8 has signed a second 15-year lease valued at $9.8 billion for 352 megawatts of IT capacity at its Beacon Point campus in Texas, the company announced Monday. The agreement completes the commercialization of the 1-gigawatt site and brings the campus's total base-term contract value to $19.6 billion, with renewal options potentially reaching $50.2 billion.

The lease is with an existing investment-grade tenant that has now doubled its footprint at the facility to 704 MW. According to Hut 8, the expansion was driven by a 57% capacity gain achieved by redesigning the first data hall around Nvidia's architecture—without requiring additional land or utility infrastructure.

Why it matters

The deal illustrates how former cryptocurrency miners are successfully pivoting to AI infrastructure by repurposing power assets developed during the crypto boom. As hyperscalers race to deploy generative AI services, electricity availability has become a critical bottleneck. Companies that already control substantial power capacity and construction-ready sites hold a strategic advantage in a market where demand for compute infrastructure is outpacing supply. Hut 8's ability to secure multi-billion-dollar commitments from investment-grade tenants validates this repositioning strategy.

Portfolio reaches $26.6 billion in contracts

Across Hut 8's broader AI data center portfolio, total contracted capacity has reached 949 MW, supported by 1,330 MW of utility capacity. The company reports aggregate base-term contract value of $26.6 billion, generating average annual net operating income exceeding $1.75 billion. All contracted capacity is leased to or backed by investment-grade counterparties, according to the company.

Hut 8 expects to begin delivering the first Phase 2 data hall at Beacon Point in the second quarter of 2028. The company's stock rose approximately 5% in premarket trading following the announcement.

From bitcoin mining to AI infrastructure

Hut 8 began operations as a cryptocurrency miner before shifting toward AI infrastructure. The transition reflects a broader industry pattern as former bitcoin miners seek new revenue streams amid surging demand for compute capacity driven by generative AI.

Technology companies have committed enormous capital to data centers equipped with advanced chips, according to Reuters. This spending competition has extended beyond semiconductors to encompass power availability, transmission access, and construction-ready locations, making electricity one of the industry's primary constraints.

The details were first reported by AI Watch.