Target Hospitality Lands $550M Data Center Campus Deal for 4,000 Beds
Target Hospitality secured a $550 million multi-year contract to build and operate a 4,000-bed data center campus in North Texas for a top-five hyperscaler. The five-year deal through Q1 2031 with two two-year options offers $20–40 million in variable annual revenue and lifts 2026 guidance to $360–370 million.
1. Contract Scope
Target Hospitality secured a multi-year lease and services agreement with a top-five hyperscaler to design, build, and manage a purpose-built community accommodating approximately 4,000 personnel at a new North Texas data center campus. The turnkey offering includes modular accommodations, premium food service management, concierge, laundry, logistics, security, and recreational amenities.
2. Revenue and Guidance
The initial five-year contract through Q1 2031 guarantees over $550 million in committed minimum revenue and offers potential variable revenue of $20–40 million annually based on customer occupancy. Reflecting this award, the company raised its full-year 2026 outlook to $360–370 million in total revenue and $70–80 million in Adjusted EBITDA.
3. Timeline and Investment
Construction began immediately with first occupancy expected in Q3 2026 and full completion anticipated by Q2 2027; the contract also includes two two-year extension options through January 2035. Total net capital investment is estimated at $115–125 million, with approximately 80% of spending to occur in 2026 using a mix of existing and new assets tailored to customer specifications.