Hut 8 has secured a 15-year lease valued at $9.8 billion for an additional 352 megawatts of AI capacity at its Beacon Point campus in Nueces County, Texas, doubling the site's committed footprint to 704 MW.
Lease Details and Financial Projections
The new agreement covers 352 MW of IT infrastructure with the same tenant responsible for the first phase. It features a triple-net lease structure including a 3% annual rent escalation, which is expected to generate approximately $655 million in annual net operating income on average after stabilization.
Combined with the original lease, the total base-term value of both agreements is $19.6 billion, accompanied by five-year renewal options potentially increasing the campus-level value to $50.2 billion.
AI Infrastructure Development and Sector Trends
The expansion will employ NVIDIA's DSX reference architecture and is anticipated to commence energization in Q1 2027, with delivery of the second data hall due by Q2 2028. Hut 8's overall AI portfolio now accounts for 949 MW, including 245 MW at its River Bend facility, with contracted base-term values totaling $26.6 billion and expected annual net operating income exceeding $1.75 billion.
This move reflects a broader shift among bitcoin miners who are monetizing power assets through AI and data center contracts. Other examples include Cleanspark's $6.6 billion lease for 175 MW in Georgia and TeraWulf's $19 billion agreement for a 401 MW project in Kentucky. also Marathon Digital Holdings (MARA) is acquiring a Texas site capable of supporting up to 2 GW by 2028.
Hut 8 CEO Asher Genoot emphasized the speed of commercialization and the commitment from partners, highlighting the strategic value of their greenfield sites and long-term partnerships.
This material is for informational purposes only and does not constitute financial advice.
