Hut 8 Corp. shares climbed 37% Wednesday after the company disclosed a long-term lease for a major portion of capacity at its Beacon Point AI data center campus in Nueces County, Texas.
The agreement is a 15-year, $9.8 billion triple-net lease covering 352 MW of IT capacity. Hut 8 said the tenant is a high-investment-grade counterparty. Including this new contract, the company’s total contracted AI data center capacity now stands at 597 MW, with aggregate base-term contract value of about $16.8 billion.
The lease carries a 3.0% annual base rent escalator and includes three renewal options, each for five years. If all three renewal options are exercised, Hut 8 estimates the total contract value could rise to roughly $25.1 billion.
From a cash-flow perspective, Hut 8 projects cumulative net operating income contribution of $9.8 billion over the base lease term tied to the new agreement. That translates to an expected average annual NOI contribution of $655 million upon stabilization.
Initial delivery of the data hall is expected in the third quarter of 2027. Beacon Point is the second AI-focused data center campus Hut 8 has commercialized using its power-first, greenfield development approach, following River Bend.
On the utility front, Hut 8 has executed an interconnection agreement for 1,000 MW of utility capacity with American Electric Power, with initial energization expected in the first quarter of 2027. The Beacon Point campus will be designed to NVIDIA’s DSX reference architecture for gigawatt-scale AI infrastructure.
Hut 8 is advancing the campus through partnerships: Jacobs is serving as EPCM lead and Vertiv Holdings Co. is supporting critical digital infrastructure systems. The company also noted that initial data hall delivery timing and the utility energization are expectations tied to project execution.
Financially, for the first quarter of 2026 Hut 8 reported revenue of $71.0 million, up from $21.8 million in the same quarter a year earlier. The company recorded a net loss of $253.1 million for the quarter, compared with a net loss of $134.3 million in the prior-year period; the prior period figure included $295.7 million of primarily unrealized losses on digital assets.
Hut 8 also provided an update on its development pipeline as of May 6, 2026. The company reported a pipeline totaling 8,375 MW, comprised of 5,315 MW of Energy Capacity Under Diligence, 1,680 MW Under Exclusivity, 550 MW Under Development, and 830 MW Under Construction.
Key points
- Hut 8 signed a 15-year, $9.8 billion triple-net lease for 352 MW at Beacon Point, expanding contracted capacity to 597 MW and lifting stock price by 37%.
- The lease includes a 3.0% annual rent escalator and three 5-year renewal options that could raise total contract value to about $25.1 billion if exercised; projected cumulative NOI over the base term is $9.8 billion, with an expected average annual NOI of $655 million upon stabilization.
- Sectors affected include AI data centers and related infrastructure, utilities because of the 1,000 MW interconnection agreement with American Electric Power, and critical digital infrastructure services through firms such as Jacobs and Vertiv.
Risks and uncertainties
- Timing risk: Initial delivery of the data hall is expected in the third quarter of 2027, and initial utility energization is expected in the first quarter of 2027 - both are stated expectations rather than completed events, affecting construction and utility sectors.
- Contract option risk: The three 5-year renewal options could increase contract value substantially if exercised, but their exercise is not guaranteed, which affects long-term revenue visibility for investors and the data center sector.
- Financial performance: Hut 8 reported a net loss of $253.1 million in Q1 2026, larger than the prior-year period, underscoring ongoing profitability and balance-sheet considerations for stakeholders in the company and its lenders.
Bottom line
The Beacon Point lease materially raises Hut 8’s contracted AI capacity and projects significant NOI over the base lease term, while the company continues to advance a large development pipeline and utility interconnection agreements. Key milestones remain subject to execution and timing.