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Hut 8 Commercializes First Phase of 1 GW Beacon Point AI Data Center Campus with 15-Year, 352 MW IT Lease with Base-Term Contract Value of $9.8 Billion

Beacon Point Lease Secures Future Revenue but Execution Risk Remains High

By The Northwire Desk — AI Analysis May 06, 2026 · 06:30 HUT · 109.47 HUT 8 CORP. J
Executive Summary
  • Event: Hut 8 commercialized the first phase of its Beacon Point AI data center campus in Nueces County, Texas.
  • Deal Size: 15-year lease for 352 MW of IT capacity with a base-term contract value of $9.8 billion.
  • Terms: Triple net (NNN) lease, 3.0% annual rent escalator, three 5-year renewal options (potential total value ~$25.1 billion).
  • Financial Impact: Expected average annual Net Operating Income (NOI) contribution of $655 million upon stabilization; cumulative NOI over base term estimated at $9.8 billion.
  • Timeline: Initial data hall delivery Q3 2027; campus energization Q1 2027.
  • Partners: NVIDIA (architecture), Jacobs (EPCM), Vertiv (infrastructure), AEP Texas (utility). Tenant is confidential but high-investment-grade.
  • Context: This expands total contracted AI capacity to 597 MW ($16.8 billion aggregate value).
Material Impact
  • Positive Validation of Strategy: The $9.8 billion lease validates Hut 8's pivot from pure Bitcoin mining to large-scale AI infrastructure landlord. It locks in long-term revenue streams that dwarf current operational revenues (FY2025 Revenue: $235.1 million).
  • Revenue Recognition Lag: Despite the headline value, cash flow impact is delayed until stabilization (post-Q3 2027). Current financials show a net loss of $(248.0) million for FY2025 and negative Adjusted EBITDA ($(135.4) million). The market must price in future potential rather than current earnings.
  • Execution Risk: While partners (Jacobs, Vertiv, AEP) are Tier 1, the construction timeline is long (18+ months to energization). Any delays could impact revenue recognition and debt servicing capabilities given the high leverage.
  • Debt Servicing: The company recently closed $3.25 billion in senior secured notes for River Bend and refinanced credit facilities. While rates improved (7.0% vs 9.0%), the aggregate debt load is significant relative to current cash flow generation.
  • Market Expectations: The stock price has rallied from ~$17.45 (May 2025) to ~$109.47 (May 2026), suggesting much of this growth potential was already priced in prior to the announcement.
HUT · Price
Company Overview
  • Overview: Hut 8 is transitioning from a Bitcoin mining company to a diversified digital infrastructure provider focusing on AI data centers and high-performance computing (HPC).
  • Flagship Project: Beacon Point AI Data Center Campus (Texas) - 1 GW planned capacity, first phase 352 MW leased. River Bend Data Center (245 MW) is also in development with $7.0 billion Fluidstack lease.
  • Development Pipeline: Total energy capacity under various stages: 8,375 MW (as of May 6, 2026).
Read the original news release →

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