Hut 8 and Fluidstack Enter Landmark 15-Year AI Data Center Lease Agreement

Hut 8 Corp. Signs Landmark AI Data Center Lease with Fluidstack

Hut 8 Corp., a prominent energy infrastructure platform, has made headlines by entering into a monumental 15-year lease agreement with Fluidstack. This strategic contract, valued at $7.0 billion, will provide 245 megawatts (MW) of IT capacity at Hut 8's state-of-the-art River Bend data center campus located in Louisiana. This deal not only underscores Hut 8's commitment to driving innovation in the digital infrastructure sector but also represents a significant advancement in AI capability across energy-intensive applications.

Key Features of the Lease Agreement

The lease structure is characterized as a triple net (NNN) lease, featuring a base contract value of $7.0 billion over the initial 15-year term. Additionally, there is an annual rent escalator of 3.0%, enhancing the contract's long-term value. Fluidstack is also granted a Right of First Offer (ROFO) for an additional 1,000 MW of IT capacity at future expansion phases of the River Bend project. If all options for renewal are exercised, the total contract potential could rise to $17.7 billion.

Notably, Google, a subsidiary of Alphabet Inc., is supporting the agreement by providing a financial backstop for the lease payments and related obligations throughout the base term. This support reflects the confidence that high-profile organizations like Google have in Hut 8's operational model and its alignment with current market demands in AI technology and data processing.

Expected Benefits and Financial Contributions

Hut 8 anticipates that the deal will lead to a cumulative net operating income (NOI) contribution of $6.9 billion over the base lease term, translating to an average of approximately $454 million annually. Such financial backing amplifies Hut 8's positioning in the competitive energy infrastructure landscape and offers substantial economic returns.

Moreover, the project is slated to create significant employment opportunities in West Feliciana Parish and the Capital Region. At the peak of construction, Hut 8 expects approximately 1,000 construction jobs. Once the facility becomes operational, it is projected to generate at least 265 new jobs (75 direct and approximately 190 indirect and induced roles).

Strategic Partnerships and Innovations

This project highlights Hut 8's innovative, power-first approach to infrastructure development, supported by institutional-grade execution models designed to mitigate risks associated with project delivery. The company has assembled a roster of respected partners, including Entergy, J.P. Morgan, Goldman Sachs, Vertiv, and Jacobs, all of whom play crucial roles in ensuring the project's successful implementation.

CEO Asher Genoot emphasizes that