Updates shares in paragraph 2

By Akash Sriram

May 6 (Reuters) - Hut 8 HUT.O said on Wednesday it had signed a 15-year lease worth $9.8 billion for its Beacon Point data center campus in Texas, as demand rises for infrastructure to train and serve AI models.

Shares of the Miami, Florida-based AI data center developer surged more than 25% in early trading.

The deal is yet another signal of growing demand for power and data center capacity as companies race to expand their AI capabilities.

The agreement covers 352 megawatts (MW) capacity in the first phase of the project with an undisclosed tenant. Hut 8 said the client would install computing equipment at the site to support large-scale AI training and operations.

"We have a 15-year obligation from a high-investment-grade counterparty and the contract is structured on a take-or-pay, triple-net basis with no termination for convenience," Hut 8 CEO Asher Genoot told Reuters.

The project, in Nueces County, is part of a planned 1 gigawatt campus and reflects growing demand for energy-hungry data centers driven by AI.

The contract includes annual rent increases and could be worth as much as $25.1 billion if renewal options are exercised, Hut 8 added.

The deal expands the company's contracted data center capacity for AI to 597 MW, with total contract value rising to about $16.8 billion.

Power is expected to be connected to the site in early 2027, with the first building scheduled for completion later that year. The facility is being designed using Nvidia's NVDA.O latest data center systems, highlighting the chipmaker's influence in AI infrastructure.

The project is being built with partners, including American Electric Power AEP.O, Vertiv VRT.N and Jacobs J.N, as competition grows among companies racing to meet the computing and energy needs of AI firms.

Across its broader pipeline, Hut 8 is pursuing more than 7 gigawatts of potential capacity, signaling continued expansion as demand from large tech firms increases.