Hut 8 Signs 15-Year, $7 Billion Data Center Lease With Fluidstack
Hut 8’s $7B AI data center lease with Fluidstack, backed by Google’s financial guarantees, has prompted major analyst upgrades, reinforcing the firm’s diversification beyond crypto mining.
Hut 8 announced a 15-year, $7 billion lease agreement with AI infrastructure firm Fluidstack, securing 245 MW of power capacity at its River Bend campus in Louisiana. Google will backstop lease and operating costs, including energy and maintenance, strengthening the deal’s credit profile. The lease features three five-year renewal options that could push its value to $17.7 billion and is projected to generate $6.9 billion in net operating income over the base term. Analysts responded positively, with Cantor Fitzgerald raising its price target to $72 from $64 and Canaccord Genuity increasing its target to $62 from $54, citing enhanced terms and valuation of the River Bend site. Hut 8 plans to commission the facility in Q2 2027, with 900 MW under development and 1,255 MW under exclusivity, marking a significant expansion beyond its cryptocurrency mining operations.
- Megawatt (MW): A unit of power capacity used to quantify electricity for facilities like data centers.
- Right of First Offer (ROFO): A contractual right allowing a party the opportunity to make an initial offer before a property or capacity is offered to others.
- Data center lease: A long-term agreement to rent computing facility space and power resources.