Hut 8 Signs $7B Lease for Google-Backed AI Data Center Capacity

Bitcoin mining firm Hut 8 has made headlines by securing a staggering 15-year lease valued at $7 billion to provide 245 megawatts of capacity for an artificial intelligence (AI) data center at its River Bend campus in Louisiana. This agreement represents one of the largest infrastructure deals between a cryptocurrency company and the increasing demand for AI resources.

Key Takeaways:

Hut 8 has signed a 15-year, $7 billion lease for AI data center capacity.
Infrastructure provider Fluidstack will lease the capacity, with Google acting as a financial backstop.
Initial construction is set to begin, with the first data hall expected to be operational by Q2 2027.
The partnership positions Hut 8 more deeply into the AI sector, building on its GPU-as-a-Service offering launched in 2024.

Hut 8 officially announced the lease on Wednesday, stating that Fluidstack will oversee the leasing of the AI data center capacity. Google's involvement provides a financial safety net for the lease payments and associated obligations throughout the 15-year term. This means that if Fluidstack cannot meet their payment obligations, Google will step in to cover those costs.

Asher Genoot, CEO of Hut 8, commented, “River Bend reflects the strength of Hut 8’s power-first, innovation-driven development model, validated by the world-class counterparties we are executing alongside." He added that this milestone resulted from careful and consistent execution by the team.

The company also noted that initial construction is already underway, with plans for the first data hall to be completed and operational by the second quarter of 2027. Furthermore, additional data halls are projected to go live within the next year.

Construction at Hut 8's River Bend campus
Source: Hut 8

Hut 8 signs $7B lease for Google-backed AI data center

Google's Financial Role: Reducing Risks in Lease Transactions

One of the key elements of this deal is Google’s role as a financial backstop, covering both lease payments and other obligations during the primary term of the agreement. Both Hut 8 and Fluidstack are also expected to initiate an operations services agreement for the ongoing management of the data center, which will be fortified by an additional payment guarantee from Google.

The financing for this project will primarily come from loans directly associated with the data center. Major banks are anticipated to fund a significant portion of the construction costs, which will minimize the initial capital investment required from Hut 8.

Noah Wintroub, the global chairman of investment banking at JPMorgan Chase, remarked, “River Bend demonstrates how, when Hut 8 brings together innovative thinking, an aligned team, and institutional discipline, it translates into real, enduring value.”

This agreement marks a significant step in Hut 8’s involvement in the AI industry, which it began exploring in 2024. Last September, Hut 8 launched a GPU-as-a-Service product through its new subsidiary, Highrise AI, deploying over 1,000 Nvidia H100 GPUs to bolster its cloud-based AI computing services.

Related: MARA and Hut 8 profits surge in Q3 as Bitcoin reserves grow

The Surge of Crypto Firms in AI Infrastructure

In June, Core Scientific announced a notable $3.5 billion deal with AI cloud provider CoreWeave to utilize its infrastructure over a 12-year period, projecting an annual revenue of $290 million. Similarly, Galaxy Digital propelled its AI data center expansion in Texas after securing a $1.4 billion loan that will cover about 80% of its construction costs.

Moreover, CoreWeave entered into a 15-year agreement with Galaxy Digital to lease essential infrastructure for its AI and high-performance computing initiatives. This deal is forecasted to generate approximately $1 billion in annual revenue for Galaxy Digital.

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