Target Hospitality to construct regional data center campus

Target Hospitality (TH) announced a multi-year lease and services agreement to construct and provide facility services and hospitality solutions supporting the development of a regional data center campus located in the Southwestern United States. Target will construct and provide full turnkey support for the data center community. The community will support an initial population of 250 individuals, with the capability to expand to approximately 1,500 individuals. Target anticipates first occupancy by late 2025 and potential community expansions to meet growing customer demand in future years. The data center community contract, which has an initial term through September 2027, is expected to generate approximately $43M of committed minimum revenue over its initial term. The company anticipates approximately $5M of revenue will be realized in 2025. The company will utilize a portion of its existing asset portfolio to construct the data center community, resulting in a minimal net capital investment of approximately $6M to $9M in 2025.