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Hut 8 signs $9.8B lease to expand Texas AI power capacity
The 15-year triple-net deal covers an additional 352 megawatts, bringing contracted capacity at the Beacon Point campus to 704 megawatts.
Hut 8 has signed a 15-year, $9.8 billion triple-net lease for its Beacon Point Texas campus, a move that commercializes additional power capacity for AI-focused data center infrastructure, according to MarketBeat Ratings.
The company said the lease adds 352 megawatts of IT capacity, doubling contracted footprint at the site to 704 megawatts. The triple-net structure requires the tenant to cover property expenses including taxes, insurance, and maintenance, which the outlet notes is designed to create more predictable, utility-like cash flows.
MarketBeat Ratings added that Hut 8 is building the second phase of the data hall around NVIDIA’s DSX reference architecture, reflecting the higher power and cooling demands of AI workloads compared with traditional data centers. The article says typical rack power densities for conventional centers are roughly 10 to 15 kilowatts, while AI-related rack densities often exceed 40 kilowatts.
The outlet also stated the base-term contract value for the full 1,000-megawatt campus is $19.6 billion, and could rise to $50.2 billion if the tenant exercises all three of its five-year renewal options. It also linked recent share strength to the commercialization of the campus and the additional lease.
The tenant is described as an unnamed high-investment-grade enterprise that also executed a Phase 1 lease, the article said.