Hut 8 Secures $7B AI Data Center Deal With Google Backstop - A Crypto Miner’s Pivot
Hut 8 just landed a power play that could reshape its future—and the intersection of crypto and AI infrastructure.
The Big Bet
A $7 billion lease isn't just a contract; it's a statement. Hut 8 is locking down a massive AI data center operation, with none other than Google providing the financial backstop. This moves the needle from speculative mining to hard infrastructure—the kind Wall Street actually understands.
From Bitcoin Rigs to AI Compute
The pivot is stark. The company is leveraging its core expertise in managing power-hungry operations and repurposing it for the AI gold rush. It's a hedge against crypto volatility, using the same foundational skills—securing cheap energy, managing heat, optimizing uptime—to serve a voracious new market.
The Google Factor
Having Google's name on the deal changes everything. It's not just capital; it's credibility. It signals that a tech giant sees long-term value in the asset and the team running it. This kind of endorsement can open doors that pure-play crypto miners often find firmly shut.
A Cynical Take for the Finance Crowd
Let's be real—this is a masterclass in narrative shifting. When 'crypto miner' makes analysts yawn, you rebrand as 'AI infrastructure partner.' It's a brilliant way to tap into a hotter market multiple, even if the core business of managing data centers remains remarkably similar. Sometimes, the best trade is selling a new story to the same old street.
The bottom line? Hut 8 isn't just mining coins anymore; it's building a bridge between two of the most capital-intensive tech sectors. Whether this $7 billion gamble pays off remains to be seen, but it's a far cry from simply waiting for the next Bitcoin halving.
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.
Google is providing a financial backstop covering Fluidstack’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.
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.
“Together 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,” said Asher Genoot, CEO of Hut 8.
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.
State officials framed the project as a generational investment. Louisiana Governor Jeff Landry said the development signals the state’s ability to compete for “the most consequential opportunities” tied to AI and advanced computing. Hut 8 estimates roughly 1,000 construction jobs at peak and at least 75 permanent roles once operational.
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.
From mining to AI-heavy infrastructure
For Hut 8, River Bend isn’t a side bet or a branding exercise. It’s a clear pivot away from living and dying by Bitcoin cycles and toward owning power-heavy infrastructure that AI actually needs, with Google’s backstop turning what WOULD be a risky build into a locked-in, long-duration revenue stream.
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.
Also read: Sentient Labs Launches Open-Source AI Agent for Crypto Research
