Hut 8 Gains Buy Rating for AI Data Center Pivot with 66GW Power Edge
Jefferies initiated a Buy rating on Hut 8, citing its shift from Bitcoin mining to AI data center development powered by its electricity footprint and hyperscaler deals with Fluidstack. Analysts forecast North America will need 66GW of capacity by 2030 as colocation revenue grows from $30 billion in 2025 to $92 billion.
1. Jefferies Launches Buy Rating
Jefferies initiated coverage on five Bitcoin mining firms transitioning to AI data centers, assigning Hut 8 a Buy rating based on its power access and execution capabilities. The firm noted Hut 8’s history in large-scale electricity procurement positions it well for AI infrastructure development.
2. AI Data Center Demand Outpacing Supply
Analysts forecast North America will need 66GW of new data center capacity by 2030 as AI compute demand accelerates. Colocation leasing exceeded 15GW in 2025 while only 3.3GW came online, driving colocation revenue growth projections from $30 billion to $92 billion by 2030.
3. Power Footprint and Hyperscaler Partnerships
Hut 8’s legacy Bitcoin mining sites secured large power footprints now repurposed for AI workloads. The company has secured hyperscaler agreements, including a deal with Fluidstack, enhancing its tenant quality and financing prospects.
4. Regulatory and Market Risks
Several U.S. states are reviewing or enacting restrictions on new data center developments due to electricity and environmental concerns. These regulations could limit Hut 8’s expansion plans and affect project timelines and grid access.