AI Data Center Operators Lock in Decades-Long Leases as Power…

Event summary

AI data center market projected to grow from $471.59B in 2026 to $2.02T by 2032, with operators signing 15-20 year take-or-pay leases.
Host Digital's Site I in Oklahoma carries a 15-year take-or-pay lease for 55 MW capacity, with $1.25B in contracted base-term rent.
CleanSpark secured $2.276B in senior secured notes for its Sandersville, Georgia facility, backed by a 20-year lease with a high-investment-grade tenant.
Hut 8 closed a $1.07B revolving credit facility to support its Beacon Point AI data center campus in Texas, with $19.6B in contracted base-term value.
TeraWulf received approval for a 482 MW power agreement in Kentucky, supporting a 20-year lease with Anthropic PBC.

The big picture

The AI data center market is experiencing sustained double-digit growth, with operators increasingly locking in long-term leases to secure power and financing. The shift to 15-20 year take-or-pay contracts reflects the strategic importance of power as a constrained resource, driving a new model of project-level financing. This trend is reshaping the competitive landscape, as companies with existing power infrastructure gain a significant advantage in securing high-investment-grade tenants.

What we're watching

Power Constraints: How the scarcity of power and grid interconnections will shape the pace of AI data center development.
Financial Structuring: Whether project-level financing secured by single sites and leases will mitigate risks for operators.
Execution Risk: The ability of operators to deliver on long-term leases and secure additional financing on favorable terms.