Hut 8 prices $4.25B in notes for Texas AI data centre campus
What's the deal? Hut 8, the former Bitcoin miner turned energy infrastructure company, has priced $4.25B in senior secured notes to build an AI data centre campus in Nueces County, Texas. Its subsidiary, Beacon Point DC LLC, will use the proceeds to construct a 352 MW facility spanning 521 acres with six data halls and a dedicated substation.
The notes carry a 6.129% interest rate and mature in November 2042 — a roughly 16-year runway on one of the largest single project financings in the data centre space this year. The deal is structured as non-recourse, meaning the debt stays at the subsidiary level and doesn't touch Hut 8's corporate balance sheet.
A 15-year triple-net lease signed on May 6 anchors the project, with a base term valued at $9.8B. If the tenant exercises all renewal options, the total contract value could reach $25.1B. Hut 8 hasn't named the tenant, but says it carries a credit rating of AA- or higher.
Why now? Demand for AI compute infrastructure is surging, and companies with access to land, power, and capital are racing to build capacity. Hut 8 has positioned itself at the centre of this buildout, pivoting from crypto mining to large-scale energy infrastructure. This is its second multi-billion-dollar AI data centre financing — following a $3.25B investment-grade note offering for its River Bend campus in Louisiana. Combined, that's $7.5B in project-level debt across two developments.
Initial data halls at Beacon Point are expected to come online in Q3 2027. The full campus is designed to eventually reach 1 GW of capacity, meaning the current financing covers less than half of what's planned.
What could go wrong? The scale of debt is enormous. While the non-recourse structure shields Hut 8's balance sheet, the project's success hinges on a single unnamed tenant and the assumption that AI infrastructure demand holds steady through the 2030s and beyond. Construction delays, energy supply constraints, or a cooling in AI spending could all complicate the picture.
The signal: Hut 8's transformation tells a broader story. Companies that once thrived on crypto mining are finding far bigger opportunities — and far bigger cheques — in AI infrastructure. The fact that a former Bitcoin miner can raise $7.5B in project-level debt for AI data centres signals just how dramatically capital is flowing toward compute infrastructure. Expect more crypto-adjacent firms to follow the same playbook.
Read more: cryptobriefing.com
