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    Hut 8 (HUT) Is Down 10.5% After $10 Billion Louisiana AI Data Center Bet – What's Changed

    Simply Wall St·07/18/2026 10:21:33
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    • Hut 8 has begun constructing a US$10.00 billion data center in West Feliciana, expected to be fully operational by the third quarter of 2027 and to support around 900 construction jobs per phase plus 200 permanent roles, with a focus on local hiring and managing community concerns about noise and water use.
    • This large-scale buildout marks a significant expansion of Hut 8’s infrastructure footprint, underscoring its push into energy-intensive, AI-ready data center capacity alongside its existing operations.
    • We’ll now examine how this US$10.00 billion West Feliciana data center project could reshape Hut 8’s investment narrative and risk profile.

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    Hut 8 Investment Narrative Recap

    To own Hut 8, you need to believe it can turn its energy and Bitcoin infrastructure into durable, contracted cash flows while managing high capital needs and volatility from its mining exposure. The US$10.00 billion West Feliciana data center is a major step in that direction, but it also intensifies the biggest near term execution risk: delivering large, AI-ready campuses on time and on budget while filling them with tenants at acceptable returns.

    The River Bend campus, including the 15 year, US$7.0 billion Fluidstack lease for 245 MW and the related AI partnership with Anthropic, is the most relevant prior announcement. River Bend shows Hut 8 can secure long duration, infrastructure style contracts for power hungry AI workloads, which is central to the bull case. The new West Feliciana build could reinforce that trajectory, but it also enlarges the stakes around project delivery and customer demand.

    Yet behind the growth story, investors should be aware of how project size magnifies the risk that...

    Read the full narrative on Hut 8 (it's free!)

    Hut 8's narrative projects $1.6 billion revenue and $258.0 million earnings by 2029. This requires 76.4% yearly revenue growth and a $569.4 million earnings increase from -$311.4 million today.

    Uncover how Hut 8's forecasts yield a $126.94 fair value, a 39% upside to its current price.

    Exploring Other Perspectives

    HUT 1-Year Stock Price Chart
    HUT 1-Year Stock Price Chart

    The most bearish analysts were already assuming roughly US$1.0 billion of revenue and US$114.9 million of earnings by 2029, yet they still see far higher regulatory and decarbonization risks than the base case; this new US$10.00 billion Louisiana build could change both narratives, so it is worth comparing these very different expectations before you decide what you believe.

    Explore 6 other fair value estimates on Hut 8 - why the stock might be worth over 2x more than the current price!

    Decide For Yourself

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

    • A great starting point for your Hut 8 research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
    • Our free Hut 8 research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hut 8's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.