Hut 8 secured a second $9.8 billion lease at its Beacon Point campus on Monday, fully commercializing the 1-gigawatt Texas data center site. The existing tenant doubled its contracted capacity to 704 megawatts of IT load, bringing combined base-term lease commitments above $19 billion. The expansion reflects growing enterprise demand for AI-optimized infrastructure as Hut 8 transitions from Bitcoin mining operations to long-term data center leasing.
Hut 8 Tenant Doubles Beacon Point Capacity to 704 MW
The tenant increased its contracted capacity at Beacon Point to 704 MW of IT load out of the campus's maximum 1,000 MW of utility capacity. Combined lease commitments now exceed $19 billion in base-term contract value, or $50.2 billion if all renewal options are exercised across the entire 1,000 MW site. Each lease contains a 3% yearly base rent escalation and three five-year renewal options.
"The real test of our power-first approach is what our partners are willing to commit against it," Hut 8 CEO Asher Genoot said. "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 commercialization in just months."
Hut 8 shares went up over $106 during pre-market trading from its Friday close of $91.45 after the lease announcement.
Beacon Point Phase Two Targets Q2 2028 Operational Date
The second phase consists of a 352 MW AI data hall based on Nvidia's DSX standard architecture, supported by 500 MW of utility power. The phase is projected to be operational in the second quarter of 2028. Once stabilized, the 1,000 MW build-out of the campus is estimated to generate an average annual net operating income of $1.31 billion, according to Hut 8.
Beacon Point was originally sponsored on a speed-to-power basis to service Hut 8's linked Bitcoin miner American Bitcoin Corp, but was entirely transformed to serve AI tenants on long-term leases. Hut 8 stated it had acquired all 1,000 MW of utility capacity at Beacon Point under an interconnection deal with American Electric Power Texas. Site initial energization continues on track for the first quarter of 2027.
Hut 8 Continues $250 Million Stock Repurchase Program
Hut 8's $250 million stock repurchase program, announced in December 2024, is ongoing. The company is authorized to repurchase up to 6.16 million shares, or 5% of its currently outstanding common stock, over the following 12 months.
FAQ
What did Hut 8 announce on Monday regarding Beacon Point?
Hut 8 announced it secured a second $9.8 billion lease at its Beacon Point campus on Monday, fully commercializing the 1-gigawatt Texas data center site. The existing tenant doubled its contracted capacity to 704 MW of IT load.
What is the total contract value of Hut 8's Beacon Point leases?
Combined base-term lease commitments exceed $19 billion. If all renewal options are exercised across the entire 1,000 MW site, the total contract value rises to $50.2 billion. Each lease contains a 3% yearly base rent escalation and three five-year renewal options.
When is Beacon Point Phase Two expected to be operational?
The second phase, a 352 MW AI data hall based on Nvidia's DSX standard architecture, is projected to be operational in the second quarter of 2028. Site initial energization is on track for the first quarter of 2027.
