Hut 8 has leased 352 megawatts of IT capacity at its Beacon Point campus in Nueces County, Texas, on a 15-year triple-net lease the company values at $9.8 billion over the base term. The tenant is not named. Hut 8 describes it only as a confidential, high-investment-grade company that will run AI training and inference workloads at the site.
The base-term figure includes a 3.0 percent annual base rent escalator, so the headline number is a total across 15 years rather than a run rate. Hut 8 puts expected average annual net operating income from the lease at $655 million once the site stabilizes, and three five-year renewal options would raise the potential total to roughly $25.1 billion if all three were exercised.
Dates matter more than the total for anyone planning around this capacity. Hut 8 and AEP Texas have executed an interconnection agreement for 1,000 MW of utility capacity, with initial energization expected in the first quarter of 2027. Initial data hall delivery is expected in the third quarter of 2027.
The capacity arithmetic is worth separating out. Hut 8 says the 352 MW of leased IT capacity requires approximately 500 MW of utility capacity, against an interconnection sized at 1,000 MW, which leaves room at the same site for a second phase the company has not yet contracted.
In its first quarter results, Hut 8 CEO Asher Genoot connected the deal to the company's earlier Louisiana campus: "We identified a site that incumbents and peers overlooked and delivered a lease structured on the same triple-net, take-or-pay terms that defined our first AI data center lease at River Bend." The operational detail behind that comparison is that Beacon Point was originally underwritten to serve Hut 8's affiliated customer American Bitcoin Corp and was repositioned to AI, and that the first data hall was originally scoped at 224 MW of IT capacity and redesigned to 352 MW, a 57 percent increase Hut 8 says it achieved within the same land and utility footprint.
The redesign is attributed to rack power density. Hut 8 says the hall is engineered to Nvidia's DSX reference architecture for gigawatt-scale AI factories, with Nvidia engaged as technology partner, Jacobs retained as engineering, procurement and construction management lead, and Vertiv supporting critical digital infrastructure systems.
For comparison against the rest of Hut 8's book, the company reported total contracted AI data center capacity of 597 MW of IT capacity with aggregate base-term contract value of about $16.8 billion, and separately reported first quarter colocation revenue of $1.3 million with a further $27.7 million of colocation revenue, including reimbursements, recognized through its share of the unconsolidated King Mountain joint venture. The contracted figures are forward commitments, not revenue recognised to date.
Two things are unresolved on the published record. The tenant's identity is withheld, so the counterparty credit sits behind Hut 8's own description of it, and neither document states a price per kilowatt, leaving the $9.8 billion total and the 352 MW as the only basis for comparison against other wholesale deals.
Buyers evaluating Texas capacity now have a dated reference point for a large triple-net AI lease: energization in the first quarter of 2027 and first data hall in the third. Engineers should note the 224 MW to 352 MW redesign inside a fixed utility footprint, which is a density decision rather than a power procurement one.
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