Hut 8 has signed a $7 billion AI data center lease in Louisiana, marking a major shift from crypto mining to AI infrastructure, with Google backing the deal.
Key Takeaways
- Hut 8 signed a 15-year, $7 billion lease with Fluidstack to develop a 245-megawatt AI data center at its River Bend campus in Louisiana.
- Google is providing a financial backstop for the full lease term, underlining the growing demand for AI infrastructure from cloud giants.
- The deal includes potential expansion to $17.7 billion through renewal options and a right of first offer for up to 1,000 megawatts of additional capacity.
- Construction begins immediately with the first data hall expected by Q2 2027, creating up to 265 new jobs and major economic impact in Louisiana.
What Happened?
Hut 8, a company that once focused purely on Bitcoin mining, has signed a transformative $7 billion, 15-year lease to develop a massive AI data center in Louisiana. The lease with Fluidstack is part of the company’s broader strategy to repurpose its energy and infrastructure capabilities to meet the rising demand for AI compute power.
Google, through its parent company Alphabet, is backing the deal financially, highlighting just how critical AI data centers have become for tech giants. The first phase of construction is expected to finish by mid-2027.
Hut 8 has signed a 15-year, $7.0 billion lease with @fluidstack for 245 MW of IT capacity at its River Bend data center campus. The Agreement grants Fluidstack a Right of First Offer for up to an additional 1,000 MW of IT capacity at future expansion phases of the campus, subject… pic.twitter.com/2A8GjaE0tK
— Hut 8 (@Hut8Corp) December 17, 2025
A Major Pivot from Bitcoin to AI
The River Bend project reflects a significant evolution in the data infrastructure space. Former crypto miners like Hut 8 are now repositioning themselves as energy and AI infrastructure platforms, moving away from the volatile world of Bitcoin mining.
Hut 8’s CEO Asher Genoot emphasized that the company pursued a deliberate and disciplined approach, stating:
Deal Details and Financials
- The $7 billion contract covers a 15-year triple-net lease with a 3% annual base rent escalator.
- The deal includes three five-year renewal options that could increase the total contract value to $17.7 billion.
- Google is financially backing the lease, covering all payments and related obligations, reinforcing confidence in the project’s stability.
- J.P. Morgan and Goldman Sachs are leading the loan underwriting, with up to 85% loan-to-cost project financing expected.
The agreement also grants Fluidstack a Right of First Offer for up to 1,000 MW of additional IT capacity, signaling potential for even greater expansion.
Strategic Partnerships Power the Project
This isn’t a one-company show. Hut 8 has assembled a powerhouse team of partners to bring River Bend to life:
- Jacobs Solutions will serve as the EPCM (Engineering, Procurement and Construction Management) partner.
- Vertiv, a leader in digital infrastructure, will provide critical systems support.
- Entergy Louisiana has already secured 330 MW of utility capacity for the site, with scalability up to 1,000 MW.
According to Noah Wintroub of J.P. Morgan:
Economic Impact for Louisiana
The River Bend data center is set to be one of the largest private capital projects in Louisiana’s history. At peak construction, around 1,000 workers are expected to be on-site. Once operational, the facility will create more than 265 direct and indirect jobs in West Feliciana Parish and the broader Capital Region.
Governor Jeff Landry hailed the investment, saying it demonstrates Louisiana’s leadership in future-facing industries. Similarly, local officials and business leaders emphasized the long-term community benefits including increased tax revenue and high-paying jobs.
CoinLaw’s Takeaway
Honestly, this is one of the boldest pivots I’ve seen from a crypto miner. In my experience watching these companies evolve, few manage to break out of the Bitcoin cycle as strategically as Hut 8 just did. They’re not just hedging against crypto volatility; they’re positioning themselves at the core of the AI infrastructure boom. Having Google’s financial backing is a game-changer and validates Hut 8’s credibility on a global scale. I found their approach refreshingly methodical and partner-driven, which is rare in a space often driven by hype over substance.
If you’re watching the future of AI, data centers, or just curious where ex-Bitcoin miners are headed, keep your eyes on Hut 8. They’ve just built a bridge from the blockchain world to the AI economy.
