Target Hospitality announces 400-bed community expansion

Target Hospitality (TH) announced a 400-bed community expansion to the previously announced 250-bed data center community. The community expansion represents a 160% increase from the initial community size, resulting in a customized and purpose-built community capable of supporting up to 650 individuals. As a reminder, this community can grow to support up to 1,500 individuals. The expansion is expected to provide approximately $40M of committed minimum revenue over its initial two-year term through March 2028. Additionally, the expansion contract includes four one-year extension options after the initial term, enabling seamless contract extensions through March 2032. The expansion contract increases the total contract value for the Expanded Data Center Community to approximately $83M in committed minimum revenue, representing an over 90% increase from the initial $43M Data Center Community contract value. Target will utilize a portion of its existing asset portfolio to complete the Community Expansion, resulting in a capital investment of approximately $10M to $15M. The company will begin construction on the expansion in the fourth quarter of 2025, with anticipated completion in the first quarter of 2026.