Hut 8 Assembles Two-Tier Finance Stack for AI Data Centers

Hut 8 Corp. has become the first independent developer to assemble a two-tier finance stack for its AI data centers, mirroring the long-duration bond financing model used in traditional industries like regulated power plants and toll roads.

The company closed a $1.07 billion revolving facility led by JPMorgan Chase, adding flexibility to its capital structure. This upper tier complements the $7.5 billion in non-recourse project bonds already locked in for two flagship AI data center campuses in Louisiana and Texas.

The financing model was adapted from traditional industries and involves long-duration, creditworthy offtake contracts that convert uncertain future cash flows into investment-grade obligations.

Hut 8's first campus, River Bend in West Feliciana Parish, Louisiana, has a 15-year lease agreement with Fluidstack for 245 megawatts of critical IT capacity, backed by Google. The second campus, Beacon Point in Nueces County, Texas, is fully contracted and under construction.

The company's CEO, Asher Genoot, noted that the investment-grade market was previously not available to finance project-level data center construction.