Hut 8 announced full commercialization of its Beacon Point data center campus in Texas with a second 15-year, $9.8 billi
Hut 8 Corp has announced the commercialization of the second phase of its one-gigawatt Beacon Point data center campus in Nueces County, Texas through a new 15-year lease valued at $9.8 billion for 352 megawatts of IT capacity. The tenant, a high-investment-grade company that signed the first phase lease, has doubled its contracted IT capacity at the campus to 704 megawatts. This transaction fully commercializes 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.
With this transaction, Beacon Point has become Hut 8's first fully commercialized AI data center campus. The company secured the site, contracted the campus in full with investment-grade cash flows, financed the first phase with investment-grade debt, and commenced construction. These stages demonstrate structural features of the company's disciplined power-first development model.
Asher Genoot, CEO of Hut 8, said that the real test of their power-first approach is what their partners are willing to commit to it. The tenant chose to double its footprint at the site, which Genoot called the strongest validation an asset can receive. Hut 8 took the greenfield site from first lease to full commercialization in just months, which the CEO said speaks to the quality of the sites they originate, the credibility of their delivery, and the long-term orientation of their partnerships.
The transaction brings Hut 8's total contracted IT capacity across its AI data center portfolio to 949 megawatts, supported by 1,330 megawatts of utility capacity. The aggregate base-term contract value stands at $26.6 billion with average annual net operating income of more than $1.75 billion. One hundred percent of Hut 8's contracted AI data center capacity is leased to or backstopped by investment-grade counterparties. Renewal options increase the potential campus-level contract value to $50.2 billion.