Hut 8 secured a second 15-year lease at its Texas AI campus, adding $9.8B in contract value and fully commercializing the 1-GW site. Total portfolio value now $26.6B.
Hut 8 Corp (HUT) shares climbed nearly 12% Monday after the company locked in a second long-term lease for its Beacon Point AI data center campus in Texas. The deal fully commercializes the 1-gigawatt facility and pushes the company's total contracted AI data center portfolio to 949 MW.
The 15-year lease covers 352 megawatts (MW) of IT capacity and is with the same high-investment-grade tenant that signed the first phase. The base-term contract value: $9.8 billion. That brings the tenant's total contracted capacity at Beacon Point to 704 MW.
Across its entire contracted AI data center portfolio, Hut 8 now reports aggregate base-term contract value of $26.6 billion and average annual net operating income above $1.75 billion. The company is backed by 1,330 MW of utility capacity.
The campus sits in Nueces County, Texas, secured by a 1,000 MW utility interconnection agreement with AEP Texas. Hut 8 said the second lease means the full 1,000 MW is now under two 15-year contracts.
Phase 2 will support another 352 MW AI factory built around Nvidia's DSX reference architecture for large-scale AI infrastructure. Hut 8 expects initial data hall delivery in the second quarter of 2028.
The company said the second lease should generate $9.8 billion in cumulative net operating income over the base term, or roughly $655 million annually once stabilized. Both phases together are expected to produce $1.31 billion in average annual NOI. Three five-year renewal options per lease could push the campus-level contract value to $50.2 billion if fully exercised.
"The real test of our power-first approach is what our partners are willing to commit against it," CEO Asher Genoot said.
"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," he said.
Hut 8's "power-first" model means securing energy capacity before building data center infrastructure. The Beacon Point project was originally developed around speed-to-power opportunities before becoming a fully contracted AI data center campus. Construction is underway, with long-lead equipment procured and initial energization still expected in the first quarter of 2027.
Hut 8's stock page shows an Alpha Score of 62 out of 100, a Moderate label, and placement in the Financial Services sector.
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