Hut 8's AI Data Center Boom
Hut 8 Finalizes Second $9.8 Billion Texas AI Campus Lease, Totaling $19.6 Billion
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Key Points
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The Beacon Point expansion is complemented by Hut 8’s River Bend site, adding 245 MW and bringing the company’s AI data center portfolio contracted IT capacity to 949 MW.
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Hut 8 has secured a 1,000 MW interconnection with AEP Texas for Beacon Point, with broader utility capacity cited at up to 1,330 MW for its AI portfolio.
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In conjunction with the lease, Hut 8 authorized a buyback of up to 6,159,439 shares, representing about 5% of its outstanding common stock.
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Asher Genoot, Hut 8's CEO, emphasized the rapid progress from greenfield development to full commercialization, stating: “We took this greenfield site from first lease to full commercialization in just months.”
Hut 8 has signed a second 15-year lease worth $9.8 billion at its Beacon Point AI campus in Nueces County, Texas, covering 352 megawatts of IT capacity, according to Yahoo Finance. The deal fully commercializes the one-gigawatt site and brings the two-lease campus to a combined base-term value of $19.6 billion.
The same investment-grade tenant signed both leases, doubling its footprint at Beacon Point. Seeking Alpha reported that Hut 8 stock rose on the news. CEO Asher Genoot said: "We took this greenfield site from first lease to full commercialization in just months."
Beacon Point Campus Now Locked In at 704 MW
The new lease adds 352 MW to the 352 MW already contracted in Phase 1, bringing total tenant IT capacity at Beacon Point to 704 MW, according to Market Screener. The lease carries a 3% annual rent escalator built in. That means rent grows every year over the full 15-year term.
Beacon Point is built around NVIDIA's DSX architecture, designed for large-scale AI workloads. The campus holds a 1,000 MW interconnection with AEP Texas. Energization is expected in 2027, with the first Phase 2 data halls coming online in Q2 2028, per Yahoo Finance.
Hut 8's AI Portfolio Hits 949 MW Total Contracted Capacity
Beyond Beacon Point, Hut 8 also operates the River Bend site, which adds another 245 MW of contracted IT capacity. Combined, Hut 8's full AI data center portfolio now stands at 949 MW, according to Value The Markets. Total utility capacity across the AI portfolio reaches up to 1,330 MW.
The company's total base-term contract value across all sites is now $26.6 billion. Projected average annual net operating income tops $1.75 billion. Beacon Point alone is expected to generate roughly $1.31 billion in annual NOI once fully stabilized, per Yahoo Finance.
Renewal Options Could Push Campus Value to $50 Billion
If tenants exercise all renewal options at Beacon Point, the campus could reach a total contract value of up to $50.2 billion, according to Head Topics. That figure reflects the long-term upside of locking in a single investment-grade tenant across two large leases.
This deal marks a sharp pivot for Hut 8, which built its name in Bitcoin mining. Value The Markets noted the company has shifted its core strategy toward AI infrastructure and energy solutions. The power-first approach — securing large grid interconnections before building — is central to that shift.
Hut 8 Launches Share Buyback Alongside the Lease Deal
Alongside the lease announcement, Hut 8's board authorized a share buyback of up to 6,159,439 shares. That represents about 5% of the company's outstanding common stock, per Market Screener. Buybacks signal management confidence in the stock's value at current prices.
Seeking Alpha reported that investors responded positively, with Hut 8 shares rising after the announcement. The combination of a massive long-term lease and a buyback program gave the market two reasons to bid the stock higher on the same day.
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