Hut 8 stock is up nearly 35% after $9.8B AI data center lease

Hut 8 shares soared 35 percent on Wednesday after announcing a 15-year, $9.8 billion lease for the first phase of its Beacon Point AI data center campus in Nueces County, Texas.

HUT was trading around $109 at press time, giving the company a market capitalization of nearly $12 billion.

The deal covers 352 megawatts of IT capacity under a triple-net lease to a confidential high-investment-grade tenant, which will use the campus for AI training and high-end workloads.

The Hut 8 lease includes a 3% annual base rent escalator and is expected to generate net operating income of $9.8 billion over the base period.

Beacon Point introduces Hout 8's second AI data center campus, the jurisdiction's first greenfield development model since River Bend. The transaction brings Hat 8's total contract AI data center capacity to 597 MW, with a total initial contract value of $16.8 billion and an average annual NOI of approximately $1.1 billion.

The company has entered into an interconnection agreement for 1,000MW of utility capacity at Beacon Point, with first power expected in the first quarter of 2027 and delivery of the first data hall in the third quarter of 2027.

Hut 8 is the first phase designed around NVadi's DSX reference architecture for gigawatt-scale AI infrastructure.

The deal will strengthen Hat 8's focus from Bitcoin mining to energy and AI infrastructure, a shift that has caught the attention of investors as demand for power-intensive computing is reshaping the data center market.

Hut 8 reported first-quarter revenue of $71 million, a 225 percent increase from a year ago, while its computing revenue rose 309 percent to $65.97 million, driven by AI cloud, traditional cloud and ASIC computing.