Hut 8 has signed a 15-year, $9.8 billion lease for AI data center capacity at its Beacon Point campus in Nueces County, Texas, with an unnamed tenant the company described as high investment grade. The announcement sent Hut 8 shares up nearly 30% on Wednesday.
The agreement covers 352 megawatts of IT capacity and is structured as a triple-net lease with a 3% annual rent escalator. At full operation, the site is expected to generate about $655 million in annual revenue. If the tenant exercises all three five-year renewal options, the total contract value would rise to $25.1 billion.
Beacon Point expands Hut 8’s AI campus business
Hut 8 said Beacon Point is the second AI campus commercialized through its greenfield development model, following the River Bend site in Louisiana. CEO Asher Genoot said the project reflects the company’s approach of starting with power and keeping flexibility across end markets. He added that operating across multiple applications allows Hut 8 to underwrite assets that single-use-case developers cannot.
After the deal, Hut 8’s total contracted AI data center capacity stands at 597 megawatts, with combined base-term value reaching $16.8 billion. The company also said its total development pipeline now totals 8,375 megawatts across sites in construction, development, and exclusivity stages.
NVIDIA-based buildout targets first power in 2027
The Beacon Point facility will be built using NVIDIA’s DSX reference architecture, with American Electric Power, Vertiv, and Jacobs listed as partners. Initial energization is expected in Q1 2027, and the first data hall is scheduled for delivery in Q3 2027.
The lease announcement came with Hut 8’s Q1 2026 results. Revenue reached $71 million, up from $21.8 million a year earlier but below Wall Street’s $79.4 million consensus estimate. The company reported a $253.1 million net loss for the quarter, driven mainly by $295.7 million in unrealized losses on digital assets. As of March 31, Hut 8 said it had about $1.3 billion in combined cash and bitcoin reserves.
Bitcoin miners continue shifting toward AI infrastructure
Hut 8 is part of a broader move by former bitcoin miners into AI infrastructure as mining margins tighten. The report noted similar shifts by Core Scientific, TeraWulf, and IREN. Under current market conditions, publicly listed miners are facing losses of about $19,000 per bitcoin produced. For Hut 8, the Beacon Point lease creates a longer-duration revenue base intended to reduce exposure to swings in its bitcoin mining business.