Bitcoin miner Hut 8 lands $7B Google-backed AI data center lease

cointelegraphPublished on 2025-12-17Last updated on 2025-12-17

Abstract

Bitcoin mining company Hut 8 has signed a 15-year, $7 billion lease agreement to provide 245 megawatts of AI data center capacity at its River Bend campus in Louisiana. Infrastructure provider Fluidstack will lease the capacity, with Google acting as a financial backstop to cover payments if Fluidstack defaults. The project, partially financed by major banks, is already under construction, with the first data hall expected to be operational by Q2 2027. This deal highlights Hut 8's strategic expansion into the AI sector, following similar large-scale moves by other crypto-native firms like Core Scientific and Galaxy Digital into AI infrastructure.

Bitcoin mining company Hut 8 signed a 15-year, $7 billion lease to deliver 245 megawatts of artificial intelligence data center capacity at its River Bend campus in Louisiana, marking one of the biggest infrastructure agreements between a crypto-native company and hyperscale AI demand.

Hut 8 announced Wednesday that infrastructure provider Fluidstack will lease the capacity, while Google will provide a financial backstop covering lease payments and related obligations over the 15-year base term. This means that Google will cover the payments if Fluidstack is unable to pay the costs.

“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,” said Hut 8 CEO Asher Genoot, adding that the agreement is a result of disciplined and patient execution.

The company said initial construction is already underway, with the first data hall scheduled for completion and commissioning in the second quarter of 2027. Additional data halls are expected to come online over the next year.

Source: Hut 8

Google backstop and institutional financing de-risk lease delivery

A defining feature of the deal is Google’s role as a financial backstop, covering both pass-through obligations and lease payments during the base term.

Hut 8 and Fluidstack are also expected to execute an operations services agreement for ongoing data center management, backed by an additional payment guarantee from Google.

The project will be financed using loans tied directly to the data center, with major banks expected to cover most of the construction cost, reducing the amount of capital Hut 8 needs to invest upfront.

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

The agreement deepens Hut 8’s involvement in the AI sector, which started in 2024. In September 2024, Hut 8 launched a GPU-as-a-Service offering through its new subsidiary, Highrise AI. With the pivot, Hut 8 deployed over 1,000 Nvidia H100 GPUs to drive its cloud-based AI compute services.

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

Crypto-native firms to earn billions in the AI sector

In June, Core Scientific announced a $3.5 billion deal with AI cloud provider CoreWeave to rent out its infrastructure over a 12-year term. The deal is expected to generate an annual revenue of $290 million for Core Scientific.

In August, Galaxy Digital accelerated the expansion of its Helios AI data center in Texas after securing a $1.4 billion loan that will cover roughly 80% of the project’s construction costs.

AI infrastructure firm CoreWeave also signed a 15-year agreement to lease power, cooling and physical data center infrastructure from Galaxy Digital to support its AI and high-performance computing operations. The deal is expected to generate roughly $1 billion in annual revenue for Galaxy

Magazine: Koreans ‘pump’ alts after Upbit hack, China BTC mining surge: Asia Express

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