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Hut 8 has signed a second 15-year AI data centre lease worth USD 9.8 billion with an existing investment-grade customer, fully commercialising its 1-gigawatt Beacon Point campus in Texas. The agreement doubles the customer's contracted capacity at the site to 704 MW and raises the campus' base-term contract value to USD 19.6 billion. The company has expanded its total contracted AI data centre portfolio to 949 MW as demand for AI computing infrastructure continues to grow, supported by rising investments in advanced data centres worldwide.
Hut 8, a company that has transitioned from cryptocurrency mining to AI data centre infrastructure, announced earlier this week that it has signed a second 15-year lease valued at USD 9.8 billion with an existing investment-grade customer. The agreement fully commercialises the company's 1-gigawatt Beacon Point campus in Texas, marking another major step in its expansion into AI infrastructure.
Following the announcement, the company's shares gained nearly 5% in pre-market trading. Hut 8's stock has also almost doubled in value so far this year, reflecting growing investor confidence in companies building infrastructure for artificial intelligence.
The latest lease covers 352 megawatts (MW) of IT capacity and doubles the customer's total contracted capacity at the Beacon Point campus to 704 MW. According to the company, the campus now carries a base-term contract value of USD 19.6 billion over the 15-year lease period. If renewal options are exercised, the total contract value could increase to USD 50.2 billion.
The company said its total contracted AI data centre capacity has now increased to 949 MW across its portfolio. This capacity is supported by 1,330 MW of utility power, while the aggregate base-term contract value of its AI data centre business has reached USD 26.6 billion. Hut 8 also stated that all contracted capacity is either leased to or backed by investment-grade counterparties, providing long-term revenue visibility.
Hut 8 has increasingly shifted its business strategy towards AI infrastructure, joining several former bitcoin mining companies that are using their existing power assets, land and data centre expertise to meet the growing computing requirements of artificial intelligence companies. The rapid expansion of generative AI has significantly increased demand for high-performance computing facilities, leading global technology companies to commit hundreds of billions of dollars towards new AI-focused data centres equipped with advanced processors, including those supplied by Nvidia.
As AI infrastructure investments continue to grow, competition has expanded beyond semiconductor manufacturing to include access to electricity, transmission networks and construction-ready sites. Industry experts have identified reliable power availability as one of the biggest challenges for the next phase of AI data centre development.
Hut 8 also revealed that it redesigned the first data hall at the Beacon Point campus around Nvidia's architecture, enabling the facility to increase computing capacity by 57% without expanding its land area or utility footprint. The company said this improvement contributed to the existing tenant's decision to double its contracted capacity at the campus.
The Beacon Point project is part of Hut 8's broader strategy to establish large-scale AI-ready infrastructure in North America. The company has been expanding its presence in the high-performance computing and AI hosting market as demand shifts from cryptocurrency mining towards long-term AI infrastructure services.
Looking ahead, Hut 8 expects to begin delivering the first Phase 2 data hall in the second quarter of 2028, further expanding the operational capacity of the Beacon Point campus and supporting additional AI computing deployments.
Source Reuters
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