Hut 8 Signs $9.8 Billion AI Data Center Lease

Hut 8 Mining Corp signed a 15-year lease agreement worth $9.8 billion for its Beacon Point data center campus in Nueces County, Texas. The deal provides an undisclosed high-investment-grade tenant with 352 megawatts of AI computing capacity in the project's first phase. Due to annual rent increases and potential renewal options, the total contract value could reach $25.1 billion.

The 525-acre facility will utilize Nvidia systems and is being developed with partners including American Electric Power, Vertiv, and Jacobs. This agreement increases the company's total contracted AI capacity to 597 MW, with an aggregate base-term contract value of nearly $17 billion. The project represents an $8.5 billion initial investment, creating 945 construction and 115 permanent jobs, with a second phase planned for an additional $8.5 billion investment to reach a total capacity of 1,000 megawatts.

To limit environmental impact, the campus employs a closed-loop cooling system using water sourced from outside the county. Power connection is expected in early 2027. Following the announcement, Hut 8 shares jumped 35%, supported by a $1.3 billion liquidity cushion of cash and Bitcoin and a debt refinancing that lowered the cost of debt to 7%. This move signals a strategic pivot for the company from Bitcoin mining toward AI infrastructure and cloud services.