HUT) Rockets Higher on First Phase of 352MW Beacon Point AI Deal

The stock is trending, currently trading at $108.63 on the Nasdaq,
up over 35% on a volume of over 13 million shares.

Hut 8 announced the commercialization of the first phase of its
Beacon Point data center campus in Nueces County, Texas, through a
15-year, $9.8 billion lease (the “Agreement”) for 352
megawatts (MW) of IT capacity (the “Transaction”). The
tenant, a high-investment-grade company, will deploy dedicated
compute infrastructure at the campus to support AI training and
inference workloads at hyperscale.

Beacon Point is the second AI data center campus commercialized
under the company’s power-first, greenfield development model
following River Bend. Hut 8 has executed an interconnection
agreement for 1,000 MW of utility capacity, with initial
energization expected in Q1 2027. As with River Bend, Hut 8
identified and secured the site through its power-first approach and
subsequently commercialized it through a hyperscale AI lease. The
Beacon Point transaction brings Hut 8’s total contracted AI
data center capacity to 597 MW of IT capacity with an aggregate
base-term contract value of approximately $16.8 billion and
aggregate average annual NOI to approximately $1.1 billion.

Transaction Highlights

• Lease Structure: Triple net (NNN) lease.
• 
  Tenant Profile: Confidential,
  high-investment-grade company.
• 
  Compute Architecture: Hut 8 to deliver a 352 MW
  AI factory designed for NVIDIA’s DSX reference architecture for
  gigawatt-scale AI infrastructure.
• 
  Base-Term Contract Value: Total contract value of
  $9.8 billion over a 15-year base lease term, inclusive of a 3.0%
  annual base rent escalator.
• 
  NOI Contribution: Expected cumulative NOI
  contribution of $9.8 billion over the base lease term, translating
  to an expected average annual NOI contribution of $655 million
  upon stabilization.
• 
  Upside Economics: Three 5-year renewal options
  increase potential contract value to approximately $25.1 billion
  assuming all three options are exercised.
• 
  Delivery Timeline: Initial data hall delivery
  expected in Q3 2027.
• 
  Project-level Financing: Hut 8 intends to support
  the development of Beacon Point with project-level financing that
  aims to optimize cost of capital at the asset level while
  maintaining disciplined long-term leverage metrics at the
  corporate level.
• 
  Campus Scalability: 1,000 MW of utility capacity
  with initial energization expected in Q1 2027.
• 
  Commercial Potential: The lease for 352 MW of IT
  capacity, requiring approximately 500 MW of utility capacity,
  represents the first phase of commercialization at a campus
  designed to support up to 1,000 MW of utility capacity, providing
  significant runway for potential campus expansion and revenue
  growth.

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