Hut 8 has fully commercialised its Beacon Point data centre campus in Nueces County, Texas, US, following the execution of a second 15-year lease valued at $9.8bn for 352MW of IT capacity.
With this agreement, the company has contracted the site’s entire 1GW utility capacity for electric delivery service under an interconnection agreement with AEP Texas.
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The latest lease was signed with the same high-investment-grade tenant who previously committed to the first lease at Beacon Point, doubling that tenant’s contracted IT capacity at the site to 704MW.
The base-term contract value for the full 1,000MW campus stands at $19.6bn and covers two 15-year AI-focused leases.
Hut 8 will deliver a second 352MW AI facility designed according to NVIDIA’s DSX reference architecture, supported by 500MW of utility capacity.
The lease structure matches the terms of the earlier agreement and includes a 3% annual base rent escalator.
Hut 8 expects this agreement to contribute an average net operating income (NOI) of $655m per year for the second phase over the base term.
The company’s overall average annual NOI for the entire 1,000MW Beacon Point campus is projected at $1.31bn.
Provisions in the leases also allow for three potential five-year renewals, which could increase total campus-level contract value to $50.2bn if exercised.
The initial data hall for phase two is targeted for delivery in the second quarter (Q2) of 2028, with site preparation underway and long-lead equipment already procured. Initial energisation of the campus is scheduled for the first quarter (Q1) of 2027.
Hut 8 CEO Asher Genoot said: “The real test of our power-first approach is what our partners are willing to commit against it. Our tenant at Beacon Point chose to double its footprint at the site, the strongest validation an asset can receive. We took this greenfield site from first lease to full commercialisation in just months.
“That speaks to the quality of the sites we originate, the credibility of our delivery, and the long-term orientation of our partnerships. The opportunity ahead of us is to apply the same model across our development pipeline.”
Across its AI data centre portfolio, Hut 8 has contracted a total of 949MW IT capacity, including 704MW at Beacon Point and 245MW at River Bend, all with investment-grade counterparties.
Collectively, these contracts have a base-term value of $26.6bn and are expected to generate an average annual NOI of over $1.75bn.
