Hut 8, a Bitcoin mining firm, has secured a 15-year lease valued at $7 billion to provide 245 megawatts of artificial intelligence data center capacity at its River Bend campus in Louisiana. This deal represents one of the largest infrastructure agreements forged between a cryptocurrency company and the growing demand for hyperscale AI solutions.
On Wednesday, Hut 8 announced that Fluidstack, the infrastructure provider, will manage the lease, with Google acting as a financial backstop to ensure lease payments and related obligations are met throughout the 15-year term. Essentially, Google will take care of payments if Fluidstack cannot cover the costs.
“River Bend exemplifies Hut 8’s power-first, innovation-driven development strategy, confirmed by the top-tier partners we are collaborating with,” stated Hut 8 CEO Asher Genoot, noting that the agreement is a result of strategic and patient execution.
Initial construction efforts are already in progress, with the first data hall anticipated to be completed and operational by the second quarter of 2027. Further data halls are expected to become operational over the forthcoming year.
Google’s Financial Support and Institutional Funding Mitigate Lease Risks
A key aspect of this agreement is Google’s role as a financial backstop, covering both lease payments and other obligations throughout the base term.
Hut 8 and Fluidstack are also set to finalize an operations services agreement for ongoing management of the data center, supported by an additional payment guarantee from Google.
The funding for the project will rely on loans directly linked to the data center, with major banks anticipated to finance a substantial portion of the construction costs, thereby minimizing the initial investment required from Hut 8.
“River Bend highlights how Hut 8, through innovative thought, a cohesive team, and disciplined approach, creates genuine and lasting value,” remarked Noah Wintroub, global chairman of investment banking at JPMorgan Chase.
The agreement enhances Hut 8’s presence in the AI arena, a venture that commenced in 2024. In September of that year, Hut 8 introduced a GPU-as-a-Service initiative via its new subsidiary, Highrise AI, deploying over 1,000 Nvidia H100 GPUs to boost its cloud-based AI computation services.
Related: MARA and Hut 8 profits surge in Q3 as Bitcoin reserves grow
Crypto Firms Expected to Profit Exponentially in the AI Industry
In June, Core Scientific revealed a $3.5 billion agreement with AI cloud provider CoreWeave to utilize its infrastructure over a 12-year duration, projected to yield an annual revenue of $290 million for Core Scientific.
In August, Galaxy Digital intensified its expansion of the Helios AI data center in Texas after obtaining a $1.4 billion loan to cover approximately 80% of the construction costs.
Additionally, AI infrastructure firm CoreWeave has entered into a 15-year contract with Galaxy Digital to lease power, cooling, and physical data center infrastructure to bolster its AI and high-performance computing ventures. This arrangement is expected to generate around $1 billion in annual revenue for Galaxy.
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