Hut 8 Commercializes First Phase of 1 GW Beacon Point AI Data Center Campus

Hut 8 Corp. announced the commercialization of the first phase of its Beacon Point data center campus in Nueces County, Texas through a 15-year, $9.8 billion lease for 352 megawatts (MW) of IT capacity. The tenant, a confidential high-investment-grade company, will deploy dedicated compute infrastructure at the campus to support AI training and inference workloads at hyperscale.

The lease is structured as a triple-net arrangement with a total contract value of $9.8 billion over the 15-year base lease term, featuring a 3.0% annual base rent escalator. Three 5-year renewal options increase potential contract value to approximately $25.1 billion if all options are exercised. Expected cumulative NOI contribution over the base lease term is $9.8 billion, translating to approximately $655 million in average annual NOI upon stabilization. Initial data hall delivery is expected in Q3 2027.

Beacon Point represents the second AI data center campus commercialized under Hut 8's power-first, greenfield development model, following River Bend. Hut 8 has executed an interconnection agreement for 1,000 MW of utility capacity with initial energization expected in Q1 2027. The 352 MW lease, requiring approximately 500 MW of utility capacity, represents the first phase of commercialization at a campus designed to support up to 1,000 MW of utility capacity, providing significant runway for potential campus expansion. The transaction brings Hut 8's total contracted AI data center capacity to 597 MW of IT capacity with aggregate base-term contract value of approximately $16.8 billion and aggregate average annual NOI to approximately $1.1 billion.

Hut 8 will deliver a 352 MW AI factory designed to NVIDIA's DSX reference architecture for gigawatt-scale AI infrastructure. The campus was originally underwritten on a speed-to-power thesis to serve American Bitcoin Corp., but was repositioned to AI infrastructure as power demand accelerated and customer requirements broadened. As NVIDIA's DSX reference architecture advanced toward commercial deployment with materially higher rack-level power densities, Hut 8 redesigned the initial data hall from 224 MW to 352 MW of IT capacity—a 57% increase—within the same land and utility footprint.

"Beacon Point underscores why we start with power and maintain flexibility across end markets," said Asher Genoot, CEO of Hut 8. "Operating across multiple applications lets us underwrite assets that single-use-case developers cannot, then redirect them toward higher-value commercialization pathways as demand evolves. This flexibility is intentional, and it is embedded in how we underwrite, develop, and commercialize infrastructure."

Hut 8 is developing Beacon Point through a partnership-driven execution model first implemented at River Bend, structured to mitigate risk across the project lifecycle by aligning Tier 1 partners to defined roles. The project is being executed with American Electric Power (Nasdaq: AEP), Vertiv Holdings Co (NYSE: VRT), and Jacobs (NYSE: J). NVIDIA is engaged as technology partner, with the campus engineered to NVIDIA's DSX reference architecture. Jacobs, a global science-based consulting and advisory firm, is retained as EPCM (Engineering, Procurement and Construction Management) lead, working alongside Vertiv in its role supporting critical digital infrastructure systems.

"Beacon Point underscores the strength of our partnership with Hut 8 and the discipline required to deliver AI infrastructure with speed, safety, and certainty," said Bob Pragada, Chair and CEO of Jacobs. "Building on our work together at River Bend, we are applying our EPCM leadership and advanced digital twin technology to set the benchmark for AI infrastructure deployment, optimization, and resiliency."

Giordano Albertazzi, CEO of Vertiv, said: "Next generation AI infrastructure will be defined by how quickly power can be converted into AI capacity. Partnering with Hut 8 aligns with Vertiv's systems-level approach to converged physical infrastructure—bringing power, cooling, and deployment execution at scale. At Beacon Point, we are applying Vertiv's global manufacturing depth, supply chain discipline, engineering expertise, and critical digital infrastructure portfolio to help deliver AI capacity with speed, reliability, and long-term performance."

Hut 8 is developing the Beacon Point campus in collaboration with AEP Texas, a subsidiary of American Electric Power, and the Corpus Christi Regional Economic Development Corporation (CCREDC). Hut 8 and AEP Texas have executed the interconnection agreement for 1,000 MW of utility capacity for the campus, with initial energization expected in Q1 2027. Hut 8 brings extensive experience working within ERCOT across large-load applications, enabling the company to advance complex infrastructure projects while navigating market dynamics, interconnection processes, and transmission and system upgrade requirements.

"Beacon Point reflects the type of long-term investment that supports durable growth in the Coastal Bend economy," said Aaron Bowman, CEO of CCREDC. "Hut 8's focus on power infrastructure and disciplined execution aligns with the region's assets and workforce capabilities, and we are pleased to support the advancement of this campus in Nueces County."

"This transaction commercializes the first building of our newest gigawatt-scale campus and marks our second AI data center lease," said Asher Genoot. "More importantly, it demonstrates that our development model, which pairs power-first underwriting with disciplined commercialization and institutional execution, is repeatable and extendable across our broader pipeline."

Hut 8 intends to support Beacon Point's development with project-level financing that aims to optimize cost of capital at the asset level while maintaining disciplined long-term leverage metrics at the corporate level. The transaction advances 500 MW of utility capacity from Energy Capacity Under Development to Energy Capacity Under Construction, with an additional 500 MW from Beacon Point remaining within Energy Capacity Under Development. Hut 8 continues to advance opportunities across a broader pipeline spanning 7,545 MW of Energy Capacity Under Diligence, Exclusivity, and Development, applying the same power-first underwriting framework and institutional execution model.