American Electric Power Secures 1 GW Interconnection for 352 MW, $9.8 B Hut 8 AI Campus
American Electric Power finalized a 1,000 MW interconnection for Hut 8’s 352 MW Beacon Point AI data center campus, with initial energization scheduled for Q1 2027. The 15-year, $9.8 billion triple-net lease for the first AI factory phase drives substantial long-term power demand and infrastructure investment for AEP.
1. Interconnection Agreement and Timetable
American Electric Power executed a 1,000 MW interconnection agreement to serve Hut 8’s Beacon Point AI data center campus, with first power delivery expected in Q1 2027. This deal secures AEP’s role in enabling gigawatt-scale compute infrastructure in Nueces County, Texas.
2. AI Factory Lease Driving Power Demand
The campus’s first phase includes a 15-year, $9.8 billion triple-net lease for 352 MW of IT capacity, requiring approximately 500 MW of utility capacity. This commitment underpins predictable, elevated power consumption and long-term infrastructure utilization for AEP.
3. Long-Term Growth and Expansion Potential
Beacon Point can scale to 1,000 MW of utility capacity, with three 5-year renewal options boosting potential contract value to $25.1 billion. AEP stands to capture substantial recurring revenue and support ongoing data center expansion under its power-first delivery model.