Hut 8 Mining Corp (TSX:HUT, Unlisted (US):HUTMF) shares climbed nearly 12% on Monday after the company announced a second long-term lease agreement for its Beacon Point AI data center campus in Texas, fully commercializing the 1-gigawatt facility and increasing its contracted data center portfolio.
The company announced a 15-year lease agreement covering 352 megawatts (MW) of IT capacity with the same high-investment-grade tenant that signed the first phase lease at the campus. The agreement carries a base-term contract value of $9.8 billion and brings the tenant's total contracted capacity at Beacon Point to 704 MW.
With the transaction, Hut 8's total contracted AI data center capacity rises to 949 MW across its portfolio, supported by 1,330 MW of utility capacity. The company reported aggregate base-term contract value of $26.6 billion and average annual net operating income of more than $1.75 billion across its contracted AI data center assets.
The Beacon Point campus, located in Nueces County, Texas, is secured by a 1,000 MW utility interconnection agreement with AEP Texas. Hut 8 said the second lease fully commercializes the campus, with the full 1,000 MW capacity now contracted under two 15-year agreements.
The second phase lease will support the development of another 352 MW AI factory designed around Nvidia's DSX reference architecture for large-scale AI infrastructure. Hut 8 expects initial Phase 2 data hall delivery in the second quarter of 2028.
The company expects the second lease to contribute $9.8 billion in cumulative net operating income over the base term, or approximately $655 million annually once stabilized. Including both phases, Hut 8 expects the full Beacon Point campus to generate $1.31 billion in average annual NOI.
Hut 8 noted that three five-year renewal options under each lease could increase potential campus-level contract value to $50.2 billion if fully exercised.
"The real test of our power-first approach is what our partners are willing to commit against it," Asher Genoot, CEO of Hut 8, 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," he said.
"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."
The company also highlighted its "power-first" development approach, which involves securing energy capacity before building data center infrastructure. Hut 8 said the Beacon Point project was initially developed around speed-to-power opportunities before being converted into a fully contracted AI data center campus.
Construction activity is underway at the site, with long-lead equipment procured and initial energization still expected in the first quarter of 2027, according to the company.
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