Target Hospitality secures over $550M data center hub contract

Target Hospitality (TH) announced a multi-year lease and services agreement to construct and provide comprehensive facility and hospitality services to a hyperscaler and their development of a data center campus in North Texas. Target will construct and deliver full-turnkey support for the Data Center Hub, providing customized solutions and hospitality service offerings. The purpose-built community will be designed to accommodate approximately 4,000 individuals. Construction will begin immediately, with first occupancy expected in the third quarter of 2026 and full completion of the Data Center Hub anticipated in the second quarter of 2027. The Data Center Hub contract is expected to provide over $550M in committed minimum revenue over its initial term of approximately five years, through the first quarter of 2031. The contract also includes two additional two-year extension options, enabling continuity of services through January 2035. In addition to the committed minimum revenue, the contract provides potential variable revenue of approximately $20M to $40M annually, depending on customer occupancy once the community is fully constructed. This combined approach results in an expected net capital investment of approximately $115M to $125M, with approximately 80% of this capital investment expected to be incurred in 2026.