Hut 8 Raises $3. 25 Billion to Power AI Data Center

Hut 8, a Miami company, plans a $12 billion AI data center in St. Francisville, West Feliciana Parish. To fund the first phase, it is selling $3. 25 billion in bonds through its subsidiary Hut 8 DC LLC. The bonds carry a 6. 192% annual rate and will mature in 2042, closing the offer this Thursday. Fitch Ratings expects a BBB rating, indicating low default risk. Last year the firm earned $235. 1 million, up 45% from the previous year. AI data centers cost billions to build and need more for technology upgrades. McKinsey projects total spending could reach $7 trillion by 2030, creating a $1. 5 trillion funding gap that investors can fill.Other tech giants like Alphabet and Oracle also use bonds to finance similar projects, but construction delays and weak earnings pose risks. Hut 8 plans $5. 3 billion total spend, with $83 million in 2027 construction and the rest to repay bonds and interest. Tenants will cover about $10 billion worth of computing hardware. The first construction phase should finish by year‑end, and operations are slated to start in Q2 2027. Local officials have signed a water improvement deal, ensuring the new center will not disrupt parish supplies.