Hut 8 shares rise on second Texas data center lease

Investing.com -- Hut 8 Corp. shares traded about 6% higher in pre-market on Monday after the company announced a second 352 megawatt lease at its Beacon Point data center campus in Texas.

The company secured a 15-year lease valued at $9.8 billion for 352 megawatts of IT capacity at its Nueces County facility. The tenant is the same high-investment-grade company that signed the Phase 1 lease and has now doubled its contracted IT capacity at the campus to 704 megawatts.

The transaction completes the commercialization of the Beacon Point campus against its 1,000 megawatts of utility capacity, which is secured under an interconnection agreement with AEP Texas for electric delivery service.

The lease is structured as a triple net lease on terms similar to the Phase 1 agreement. Hut 8 will deliver a second 352 megawatt AI facility designed to NVIDIA's DSX reference architecture for gigawatt-scale AI infrastructure, supported by 500 megawatts of utility capacity.

The $9.8 billion base-term contract value includes a 3.0% annual base rent escalator. The base-term contract value for the full 1,000 megawatt campus reaches $19.6 billion.

The company expects the Phase 2 lease to contribute cumulative net operating income of $9.8 billion over the base term, or an average of $655 million per year upon stabilization. Average annual net operating income for the full 1,000 megawatt campus rises to $1.31 billion.

Each lease includes three 5-year renewal options. If all options are exercised, potential campus-level contract value increases to $50.2 billion.

Initial Phase 2 data hall delivery is expected in the second quarter of 2028. Site preparation is underway, and long-lead critical equipment has been procured. Initial energization remains scheduled for the first quarter of 2027.

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