Hut 8 Signs $9.8 Billion AI Data Center Lease in Texas, Shares Surge
May 6, 2026
Hut 8, a Miami-based AI data center developer, announced on Wednesday that it has signed a 15-year lease valued at $9.8 billion for its Beacon Point data center campus in Nueces County, Texas. The deal, which covers 352 megawatts (MW) of IT capacity in the first phase, is a clear signal of the surging demand for power and infrastructure needed to train and serve artificial intelligence models. The company’s shares jumped more than 25% in early trading following the announcement.
The agreement involves an undisclosed tenant that will install computing equipment at the site to support large-scale AI training and operations. The project is part of a planned 1 gigawatt campus and reflects the growing appetite for energy-intensive data centers driven by the rapid expansion of AI capabilities. Hut 8 CEO Asher Genoot emphasized the strength of the contract, stating, "We have a 15-year obligation from a high-investment-grade counterparty and the contract is structured on a take-or-pay, triple-net basis with no termination for convenience."
The lease includes annual rent increases and, if all renewal options are exercised, could be worth up to $25.1 billion. This deal expands Hut 8’s contracted data center capacity for AI to 597 MW, with total contract value rising to approximately $16.8 billion. Power is expected to be connected to the site in early 2027, with the first building scheduled for completion later that year. The facility is being designed using Nvidia’s latest data center systems, underscoring the chipmaker’s growing influence in AI infrastructure.
Hut 8 is developing the project with key partners, including American Electric Power, Vertiv, and Jacobs, as competition intensifies among companies racing to meet the computing and energy needs of AI firms. Across its broader pipeline, Hut 8 is pursuing more than 7 gigawatts of potential capacity, signaling continued expansion as demand from large technology companies increases. The deal underscores the critical role of specialized data center infrastructure in supporting the next wave of AI innovation, with implications for energy consumption, real estate development, and the broader tech ecosystem.
Source: reuters
