Hut 8 shares rise as company secures $9.8B AI data center lease at Beacon Point campus

Hut 8 Mining Corp (TSX:HUT, Unlisted (US):HUTMF) shares climbed astir 12% connected Monday aft the institution announced a 2nd semipermanent lease statement for its Beacon Point AI information halfway field successful Texas, afloat commercializing the 1-gigawatt installation and expanding its contracted information halfway portfolio.

The institution announced a 15-year lease statement covering 352 megawatts (MW) of IT capableness with the aforesaid high-investment-grade tenant that signed the archetypal signifier lease astatine the campus. The statement carries a base-term declaration worth of $9.8 cardinal and brings the tenant's full contracted capableness astatine Beacon Point to 704 MW.

With the transaction, Hut 8's full contracted AI information halfway capableness rises to 949 MW crossed its portfolio, supported by 1,330 MW of inferior capacity. The institution reported aggregate base-term declaration worth of $26.6 cardinal and mean yearly nett operating income of much than $1.75 cardinal crossed its contracted AI information halfway assets.

The Beacon Point campus, located successful Nueces County, Texas, is secured by a 1,000 MW inferior interconnection statement with AEP Texas. Hut 8 said the 2nd lease afloat commercializes the campus, with the afloat 1,000 MW capableness present contracted nether 2 15-year agreements.

The 2nd signifier lease volition enactment the improvement of different 352 MW AI mill designed astir Nvidia's DSX notation architecture for large-scale AI infrastructure. Hut 8 expects archetypal Phase 2 information hallway transportation successful the 2nd 4th of 2028.

The institution expects the 2nd lease to lend $9.8 cardinal successful cumulative nett operating income implicit the basal term, oregon astir $655 cardinal annually erstwhile stabilized. Including some phases, Hut 8 expects the afloat Beacon Point field to make $1.31 cardinal successful mean yearly NOI.

Hut 8 noted that 3 five-year renewal options nether each lease could summation imaginable campus-level declaration worth to $50.2 cardinal if afloat exercised.

"The existent trial of our power-first attack is what our partners are consenting to perpetrate against it," Asher Genoot, CEO of Hut 8, said.

"Our tenant astatine Beacon Point chose to treble its footprint astatine the site, the strongest validation an plus tin receive. We took this greenfield tract from archetypal lease to afloat commercialization successful conscionable months," helium said.  

"That speaks to the prime of the sites we originate, the credibility of our delivery, and the semipermanent predisposition of our partnerships. The accidental up of america is to use the aforesaid exemplary crossed our improvement pipeline."

The institution besides highlighted its "power-first" improvement approach, which involves securing vigor capableness earlier gathering information halfway infrastructure. Hut 8 said the Beacon Point task was initially developed astir speed-to-power opportunities earlier being converted into a afloat contracted AI information halfway campus.

Construction enactment is underway astatine the site, with long-lead instrumentality procured and archetypal energization inactive expected successful the archetypal 4th of 2027, according to the company.