Hut 8 prices $4.25 billion in notes for Texas data center campus

Hut 8 secured $4.25 billion at 6.129 percent to build a 352 MW AI data center in Texas, replicating its River Bend financing model.

Hut 8 Corp. priced $4.25 billion of senior secured notes at 6.129 percent to finance a 352 MW AI data center campus in Nueces County, Texas, extending its project-level financing model beyond a single deal.

"The repeatable, risk-mitigated execution at this scale requires Tier 1 counterparties who meet our standard for technical rigor," Asher Genoot, chief executive officer of Hut 8, said.

The notes, issued through project subsidiary Beacon Point DC LLC, mature in November 2042 and are fully amortizing with semiannual payments beginning in May 2030. The 521-acre campus will house six data halls leased to a tenant rated AA- or higher under a 15-year agreement with a 3 percent annual rent escalator, generating $9.8 billion in cumulative net operating income over the base term.

The financing is non-recourse to Hut 8, insulating the corporate balance sheet from project-level risk. The company now has 597 MW of contracted AI data center capacity with an aggregate base-term contract value of roughly $16.8 billion, positioning it among the larger independent data center developers serving hyperscaler demand.

River Bend Set the Template

The Beacon Point deal follows the same playbook Hut 8 used for its River Bend project in Louisiana, where it closed $3.25 billion of investment-grade senior secured notes at 6.192 percent in late April. That 245 MW project was the first single-sponsor data center to access the investment-grade construction bond market, according to the company. Both projects use Jacobs as engineering, procurement, and construction management lead.

The financing structure allows Hut 8 to optimize capital costs at the asset level while keeping leverage off its corporate books. Genoot said the River Bend terms reflected "decisions made long before we engaged the capital markets: how we originate power, the counterparties we contract with, and the structural protections we require across every component of a project."

Beacon Point is the second campus commercialized under Hut 8's "power-first, greenfield development model," which prioritizes securing interconnection and site approvals before seeking tenants. The campus is designed to support 1,000 MW of total utility capacity, with initial energization and commissioning targeted for 2027.

For investors, the repeatability of this financing model is the key signal. Hut 8 has demonstrated it can secure investment-grade debt at competitive rates — 6.129 percent versus 6.192 percent at River Bend — for large-scale AI infrastructure without diluting equity holders. The company's ability to attract AA-rated tenants and lock in 15-year leases with built-in escalators provides revenue visibility that supports project-level borrowing. Larger hyperscalers such as Microsoft, Amazon, and Google are spending tens of billions annually on data center capacity, and independent developers like Hut 8 that can finance and deliver turnkey campuses stand to capture a share of that demand.

This article is for informational purposes only and does not constitute investment advice.