Hut 8 begins substation work at $399M Beacon Point data center near Robstown

Hut 8 has started building the substation at its 1GW Beacon Point AI data center campus near Robstown, the company said with its third-quarter results on Nov. 4. Foundation and underground utility work is also under way for Phase 1, and civil design has begun for Phase 2.

The campus's first building is registered with the state as the Beacon Point Data Center Project at 4650 FM 1694, with an estimated construction cost of $398,985,153 for 657,130 SF. The owner of record is Beacon Point DC LLC, also known as Lon Hill Infrastructure LLC, of Miami. Work is listed from Sept. 28, 2026, to Nov. 5, 2027.

Jacobs holds a sole-source engineering, procurement and construction management contract for Beacon Point and is also the design firm on the state registration. Jacobs filled the same role at Hut 8's River Bend campus in Louisiana.

The campus has 1,000MW of utility capacity under an interconnection agreement with AEP Texas. An unnamed investment-grade tenant has contracted 704MW through two 352MW leases. Hut 8 puts the campus's base-term contract value at $19.6B, rising to as much as $50.2B with renewals. The second lease alone is valued at $9.8B over 15 years.

The first data hall is targeted for the third quarter of 2027, and the first Phase 2 data hall for the second quarter of 2028.

Separately, Hut 8 agreed to buy two energized West Texas sites from affiliates of Poolin Technology for up to $180M through a Chapter 11 sale. The sites would carry up to 230MW of utility capacity at full energization, subject to approvals. Closing is expected as early as the fourth quarter of 2026. Hut 8 has not named the counties.

Hut 8's total development pipeline stands at 7,859MW, with 1,000MW under construction at Beacon Point.