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Shares of Hut 8 rose sharply after the company announced a long-term agreement valued at around USD 7 billion to lease and develop a large-scale data centre in Louisiana, signalling a strategic shift towards artificial intelligence infrastructure. The move highlights the growing trend of former cryptocurrency miners repositioning their power-intensive assets to cater to rising demand from AI developers. The planned facility will be developed under a 15-year lease and is expected to come online in phases. The agreement also deepens Hut 8’s collaboration with AI-focused partners, underlining the increasing competition among global technology firms to secure energy-rich data centre capacity.
Hut 8 has entered into an agreement valued at approximately USD 7 billion to lease and develop a large-scale data centre in Louisiana, as the company continues its transition from cryptocurrency mining to artificial intelligence infrastructure. The announcement led to a sharp rise in the company's share price in early trading, extending gains already recorded over the course of the year. Advertisement
Under the agreement, Hut 8 will sign a 15-year lease to develop a 245-megawatt data centre at the River Bend campus. The company indicated that construction of the first phase of the facility is expected to be completed by early 2027, marking a significant expansion of its data centre footprint.
The shift from bitcoin mining to AI hosting has emerged as a key trend among firms such as Hut 8, CoreWeave and Applied Digital, which are repurposing access to high-voltage power, cooling infrastructure and specialised real estate. These resources have become increasingly constrained as AI developers accelerate the deployment of advanced graphics processing units and other power-intensive hardware.
Hut 8, which previously operated primarily as a bitcoin mining company, has spent the past year repositioning itself as an energy infrastructure platform. The latest agreement includes partnerships with AI model developer Anthropic and infrastructure provider Fluidstack. As part of the arrangement, Alphabet-owned Google is providing a financial backstop for the 15-year term, underscoring the urgency among major cloud providers to secure long-term capacity for AI workloads.
The lease forms part of a broader collaboration between Hut 8 and Anthropic, which could eventually scale to as much as 2.3 gigawatts of capacity. Earlier, Anthropic had announced plans to invest USD 50 billion in building data centres alongside Fluidstack.
Hut 8 has also disclosed that its total power pipeline currently stands at 8.65 gigawatts, spanning projects from early-stage site evaluation to around 1.53 gigawatts of late-stage developments under active execution.
Source - Reuters
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