Target Hospitality Secures Major Hyperscaler Data Center Contract

Target Hospitality ( (TH) ) has shared an announcement.

On April 1, 2026, Target Hospitality announced a multi-year lease and services agreement exceeding $550 million in committed minimum revenue with a top-five hyperscaler, to build and operate a purpose-built “Data Center Hub” community for about 4,000 workers in North Texas. Construction begins immediately, with first occupancy expected in the third quarter of 2026 and full completion anticipated in the second quarter of 2027, and the contract has an initial five-year term through early 2031 plus optional extensions to 2035, supported by an expected net capital investment of $115 million to $125 million, mostly in 2026.

The contract, which also provides potential annual variable revenue of roughly $20 million to $40 million once fully ramped, prompted Target to raise its 2026 outlook to $360 million to $370 million in revenue, adjusted EBITDA of $70 million to $80 million and capital expenditures of $220 million to $240 million. By mid-2027, as recent workforce hospitality contracts and the Data Center Hub reach scale, the company expects its growing infrastructure-focused portfolio and expanded operational scale to support annualized revenue above $500 million and annualized adjusted EBITDA above $160 million, reinforcing its positioning as a key partner in the build-out of data center and AI-related infrastructure.

The most recent analyst rating on (TH) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Target Hospitality stock, see the TH Stock Forecast page.

Spark’s Take on TH Stock

According to Spark, TipRanks’ AI Analyst, TH is a Neutral.

The score is anchored by a strong balance sheet and a bullish earnings-call setup (large contracted awards, clear 2026 ramp guidance, solid liquidity), offset by currently weak profitability (TTM losses and margin pressure) and technically overbought conditions that raise near-term volatility risk.

To see Spark’s full report on TH stock, click here.

More about Target Hospitality

Target Hospitality is one of North America’s largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States. The company builds, owns and operates customized communities for a range of end users, offering services such as premium food service management, concierge, laundry, logistics, security and recreational facilities, with a growing focus on workforce hospitality solutions and high-growth infrastructure end markets.

Target’s vertically integrated model and expanding Workforce Hospitality Solutions segment have diversified its revenue mix and strengthened its contract portfolio. This platform positions the company to support large-scale projects across data center and AI infrastructure, critical minerals and power generation, enhancing revenue visibility and supporting consistent cash flows and margin improvement.

Average Trading Volume: 415,166

Technical Sentiment Signal: Buy

Current Market Cap: $929.4M

For a thorough assessment of TH stock, go to TipRanks’ Stock Analysis page.