Hut 8 has signed a second 15-year lease valued at $9.8 billion for 352 megawatts of information technology capacity at its Beacon Point AI data center campus in Nueces County, Texas. The agreement fully commercializes the one-gigawatt campus and increases its total base-term contract value to $19.6 billion.
The unnamed high-investment-grade tenant also holds the lease for Beacon Point’s first phase. With the latest agreement, the customer has doubled its contracted IT capacity at the campus to 704 megawatts.
Hut 8 will develop a second 352-megawatt AI factory based on NVIDIA’s DSX reference architecture for gigawatt-scale AI infrastructure. The second phase will be supported by 500 megawatts of utility capacity.
The agreement is structured as a triple-net lease on substantially the same terms as the first phase. Under a triple-net structure, the tenant generally assumes responsibility for property-related expenses such as taxes, insurance and maintenance in addition to paying rent.
The lease includes a 3% annual base-rent increase over its initial 15-year term. Hut 8 expects the agreement to generate cumulative net operating income of $9.8 billion, averaging approximately $655 million annually after the facility reaches stabilized operations.
Net operating income represents expected lease revenue after deducting operating expenses that are not reimbursed by the tenant. It does not include broader corporate expenses, depreciation, amortization or other items that could affect Hut 8’s reported operating income.
Across both phases, Beacon Point is expected to produce average annual net operating income of approximately $1.31 billion. Three five-year renewal options attached to each lease could increase the campus’s total potential contract value to $50.2 billion if all options are exercised.
Initial delivery of the second phase’s first data hall is expected during the second quarter of 2028. Site preparation is underway, and Hut 8 has already procured long-lead equipment needed for the development.
The campus’s full 1,000 megawatts of utility capacity is secured through an electric delivery service interconnection agreement with AEP Texas. Hut 8 said it will not require additional utility capacity to support the new lease.
Initial energization of Beacon Point remains scheduled for the first quarter of 2027. The campus represents Hut 8’s first fully commercialized AI data center development.
Hut 8 initially underwrote Beacon Point based on its ability to provide power quickly to American Bitcoin Corp., an affiliated customer. The company subsequently repositioned the project around two long-term AI infrastructure leases with an investment-grade counterparty.
The first phase included a redesign of the initial data hall around NVIDIA’s DSX architecture. Hut 8 said the redesign increased available IT capacity by 57% within the same land and utility footprint.
The development demonstrates Hut 8’s power-first strategy, under which the company secures large-scale energy capacity before matching sites with suitable computing customers. This approach is intended to preserve flexibility across AI, high-performance computing and other energy-intensive markets.
Following the second Beacon Point agreement, Hut 8 has 949 megawatts of contracted capacity across its AI data center portfolio. This includes 704 megawatts at Beacon Point and 245 megawatts at the River Bend campus.
Those contracted projects are supported by approximately 1,330 megawatts of utility capacity. The company’s AI data center portfolio now has an aggregate base-term contract value of $26.6 billion and projected average annual net operating income exceeding $1.75 billion.
Hut 8 said all of its contracted AI data center capacity is leased to or financially supported by investment-grade counterparties. The company plans to apply the Beacon Point development and commercialization model across its broader project pipeline.
KEY QUOTES:
“The real test of our power-first approach is what our partners are willing to commit against it. Our tenant at Beacon Point chose to double its footprint at the site, the strongest validation an asset can receive.”
“We took this greenfield site from first lease to full commercialization in just months. That speaks to the quality of the sites we originate, the credibility of our delivery, and the long-term orientation of our partnerships. The opportunity ahead of us is to apply the same model across our development pipeline.”
Asher Genoot, CEO of Hut 8
