Google Backs Hut 8’s $7B AI Data Center Gambit – Will It Be the Next Big Thing? šŸ¤–šŸ’°

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Key Highlights (Because Who Needs Sleep When You Can Read This?)

  • Hut 8 secured a $7 billion, 15-year lease for a 245 MW AI data center campus in Louisiana. Because nothing says “Iā€™m serious about AI” like a 15-year commitment to a building that might need a new power grid by 2028.
  • Google is providing a financial backstop for lease payments, reducing counterparty risk. Because nothing says “trust us” like a tech giant guaranteeing your debt while they quietly hoard your data.
  • The project could expand to $17.7 billion in value and ranks among Louisianaā€™s largest private investments. Because Louisianaā€™s economy needed more of thatā€¦ insert ominous music.

Hut 8, one of the leading Bitcoin mining firms, has signed a long-term lease valued at $7 billion to develop a large-scale AI data center campus in Louisiana, marking one of its biggest infrastructure bets outside Bitcoin mining. Because nothing says “Iā€™m diversifying” like investing in a building that might outlive the human race.

The deal, announced on Wednesday, is backed by Google and involves blue-chip financial and industrial partners. It positions Hut 8 to address demand for AI and high-performance computing while locking in predictable, long-duration cash flows. Or as we like to call it, “the future of computing, or at least the next big thing that might not exist in 10 years.”

A 245 MW AI campus with institutional backing

Under the agreement, Hut 8 will lease 245 megawatts of IT capacity at its River Bend campus to AI infrastructure provider Fluidstack under a 15-year triple-net lease. The base term includes a 3% annual rent escalator and is expected to generate about $454 million in average annual net operating income. Because nothing says “stability” like a 3% raise thatā€™ll make your coffee taste better.

Google is providing a financial backstop covering Fluidstackā€™s lease obligations, a structure similar to recent AI data center deals where the tech giant has quietly supported large-scale compute buildouts without directly owning the assets. Because Googleā€™s not a landlord-theyā€™re a guardian of the digital realm. Or at least, thatā€™s the story theyā€™re sticking to.

All the construction and financing for the facility are being supported by firms including J.P. Morgan and Goldman Sachs, which are expected to underwrite up to 85% of project costs, while Jacobs and Vertiv will manage engineering and critical infrastructure delivery. Initial operations are targeted for early 2027. Because nothing says “weā€™re ready for the future” like a 2027 deadline. šŸ—“ļø

ā€œTogether with the State of Louisiana, Entergy, J.P. Morgan, Goldman Sachs, Vertiv, and Jacobs, we expect to deliver next-generation AI and high-performance computing infrastructure at scale, and we are committed to applying the same rigor and long-term focus as we advance commercialization across our broader development pipeline,ā€ said Asher Genoot, CEO of Hut 8. Because nothing says “weā€™re a team” like listing every partner in the universe.

Louisiana joins the AI infrastructure race

The River Bend campus will initially draw 330 MW of utility capacity from Entergy Louisiana, with options to scale by another 1,000 MW. At full buildout, the site could rank among the largest data center campuses globally. Because nothing says “weā€™re ambitious” like a data center that could power a small country-or at least a very energetic server farm.

State officials framed the project as a generational investment. Louisiana Governor Jeff Landry said the development signals the stateā€™s ability to compete for ā€œthe most consequential opportunitiesā€ tied to AI and advanced computing. Hut 8 estimates roughly 1,000 construction jobs at peak and at least 75 permanent roles once operational. Because nothing says “economic boom” like hiring 75 people to monitor servers that might never be used.

Earlier this year, miners-turned-infrastructure players like TeraWulf and Cipher Mining announced similar AI-focused data center agreements with Fluidstack, also supported by Google. This underscores how hyperscaler demand is reshaping the former Bitcoin mining sector. Because nothing says “reinvention” like trading mining rigs for data centers and hoping no one notices the existential crisis.

From mining to AI-heavy infrastructure

For Hut 8, River Bend isnā€™t a side bet or a branding exercise. Itā€™s a clear pivot away from living and dying by Bitcoin cycles and toward owning power-heavy infrastructure that AI actually needs, with Googleā€™s backstop turning what would be a risky build into a locked-in, long-duration revenue stream. Because nothing says “stability” like a $7 billion bet on a technology that might be obsolete in five years.

As AI data centers multiply and electricity becomes the real choke point, this deal shows how former crypto miners, with land, permits, and power already lined up, are quietly repositioning themselves as the backbone of the next wave of computer infrastructure. Because nothing says “adapt or die” like a data center thatā€™s 90% powered by the same energy that once mined Bitcoin. šŸ’”

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2025-12-17 19:03