The organization behind a data center development outside Baton Rouge, Louisiana, has been named as bitcoin mining company Hut8.
As reported by Business Report, Hut 8 is allegedly planning an AI data center campus that could see a total of $12.5 billion in investment.
Hut 8 will invest up to $2.5bn in the project, while future tenants will invest an additional $10bn in the IT equipment for the site. However, Hut 8 has a current market cap of $2.76bn, and would likely need further investment or a partner for this project.
The data center campus will feature two 450,000 sq ft facilities in the first phase, with construction expected to be completed by the end of 2025, while a second phase will see additional data centers constructed by the end of 2026.
The project will require 300MW of power for the first phases and is hoped to support between 1,500 and 2,000 construction jobs.
Set for a 107-acre plot of land in the southeastern corner of West Feliciana Parish, the project is likely the same "fairly significant data center" that was revealed at a November 12 Parish Council meeting.
At the time, details were sparse due to NDAs, though parish officials did confirm that it would be built “next to the paper mill” off La. 964 in the southern end of the parish. Some speculation at the time suggested it might have been Meta behind the project.
A vote on whether to give Hut 8 a building permit will be held during the West Feliciana Parish’s Planning and Zoning Commission meeting on January 6.
The scale of investment behind this data center project is usually reserved for hyperscalers. Hut 8, as a bitcoin mining company, is something of a surprise, though rumors remain that it may be working on the project in partnership with Meta.
Elsewhere in Louisiana, Meta is reportedly planning to develop a $5bn data center campus at Holly Ridge, with Entergy looking to build a new power plant nearby to power it.
Earlier this month, Hut 8 entered into a Controlled Equity Offering SM Sales Agreement. According to the company, this would enable Hut 8 to "offer and sell shares of our common stock having an aggregate offering price of up to $500 million from time to time through the sales agents, acting as our agents, or directly to the sales agents, acting as principals."
This will enable Hut 8 to raise some capital, which will be used for the "acquisition or development of power and digital infrastructure assets such as data centers."
“The launch of the ATM Program and Stock Repurchase Program have equipped the business with two powerful tools that we believe bolster our ability to navigate the volatile markets in which we operate,” said Asher Genoot, CEO of Hut 8.
“These tools support a robust, integrated capital strategy, reinforcing our proactive approach to treasury management. We believe the three capital market updates announced today send a clear message to shareholders: our key investors continue to believe in us, and the flexibility provided by the ATM Program and Stock Repurchase Program strengthens our ability to pursue ambitious growth objectives with confidence while maintaining a relentless focus on driving sustainable shareholder returns.”
In June of this year, Hut 8 raised $150 million in investment from a fund managed by Coatue Management, LLC., to help the company with its goal of serving AI customers. The following month, the company announced it was expanding its operations in Texas and had signed a power purchase agreement to procure 205MW of energy for a new data center.
Based in Florida, the company has an existing portfolio of 19 sites: ten bitcoin sites in Alberta, New York, and Texas; five high-performance computing data centers in British Columbia and Ontario, Canada; and four power generation assets in Ontario. It acquired five colo data centers in Canada from TeraGo in 2022.