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Hut 8 Raises $3. 25 Billion to Power AI Data Center
West Feliciana Parish, St. Francisville, Louisiana, USASaturday, May 2, 2026
Miami‑based Hut 8 is launching a massive AI data center in St. Francisville, West Feliciana Parish. The project will cost $12 billion and is being financed through a bond issuance.
Financing Details
| Item | Amount |
|---|---|
| Bonds sold by Hut 8 DC LLC | $3.25 billion |
| Coupon rate | 6.192% per year |
| Maturity | 2042 |
| Rating expectation | BBB (low default risk) |
The bond offering closed on Thursday, and Fitch Ratings has projected a BBB rating.
Company Performance
- 2023 earnings: $235.1 million, a 45% increase over the previous year.
Industry Context
- AI data centers are capital intensive; McKinsey estimates total global spending could reach $7 trillion by 2030.
- This creates a $1.5 trillion funding gap that investors can help fill.
- Alphabet, Oracle, and others also use bonds for similar projects, though construction delays and weak earnings pose risks.
Project Scope
- Total spend: $5.3 billion (planned).
- 2027 construction budget: $83 million.
- Remaining funds: bond repayment and interest.
- Hardware tenant contribution: ~$10 billion in computing equipment.
Construction is slated to finish by year‑end, with operations beginning in Q2 2027.
Local Impact
- A water improvement agreement has been signed, ensuring the data center will not affect parish water supplies.
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