Target Hospitality Adds 400 Beds, Secures $49M Revenue in Data Center Expansion
Target Hospitality will add 400 beds to its data center community, boosting capacity to 1,050 beds—a 320% jump from the initial 250-bed campus. The Second Expansion secures $49 million of minimum revenue from June 2026 through May 2028 and raises total committed revenue above $130 million.
1. Expansion Overview
Target Hospitality is executing a second 400-bed expansion at its purpose-built data center community, elevating total capacity to 1,050 beds—a 320% increase from the initial 250-bed setup. The campus retains the ability to further expand to 1,500 beds if demand continues to rise.
2. Financial Commitments and Extensions
The Second Expansion Contract guarantees approximately $49 million of minimum revenue over the initial two-year term from June 2026 through May 2028, and includes four one-year extension options through May 2032. With this addition, total committed minimum revenue for the data center community exceeds $130 million, more than triple the original $43 million contract value.
3. Capital Investment and Timeline
Target has commenced construction on the expansion, planning a net capital investment of $15–18 million to complete by June 2026. This scale-up is expected to enhance margin contribution through greater operating efficiencies within the company’s integrated modular accommodations platform.