Hut 8 Corp. (HUT), an energy infrastructure company, on Wednesday said it has signed a 15-year lease agreement with Fluidstack valued at about $7 billion for 245 megawatts of IT capacity at its River Bend data center campus in Louisiana. Following the news, the company's shares were more than 16% in pre-market trading.
The agreement is structured as a triple-net lease, where the tenant pays most of the property's ongoing costs, and includes a right of first offer for Fluidstack for up to an additional 1,000 megawatts of IT capacity in future expansion phases of the campus, subject to the expansion of power at the site.
Over the 15-year base term, Hut 8 expects the lease to generate cumulative net operating income of about $6.9 billion, or an average of roughly $454 million per year. The contract includes a 3% annual base rent escalator. The agreement also provides for three five-year renewal options, which could increase the total contract value to approximately $17.7 billion.
Google is providing a financial backstop covering lease payments and related pass-through obligations. Hut 8 said project-level financing of up to 85% loan-to-cost is expected to be arranged by J.P. Morgan and Goldman Sachs, subject to final terms and customary closing conditions.
The first data hall at the River Bend campus is scheduled to be commissioned in the second quarter of 2027, with additional data halls expected to come online over the remainder of 2027.
Hut 8 closed Tuesday's trading at $36.85, up 3.98%.
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