Hut 8 project sells bonds to fund Google-backed data center

Hut 8’s project is selling secured investment-grade bonds (due 2042) to raise at least $3 billion to fund a 245 MW data center in St. Francisville, Louisiana tied to Alphabet/Google. Initial price talk is about +2.13 percentage points over the benchmark; Goldman Sachs, JPMorgan and Morgan Stanley are syndicating the deal. The project’s revenues are underpinned by a 15-year lease with Fluidstack (~$7 billion in lease value) and a Google financial backstop covering lease payments and obligations, reducing credit risk for bond investors. Market impact is likely concentrated in the debt/credit market (demand for high-grade project bonds) and credit-sensitive equities—limited immediate equity-market moves, but the Google backstop may make the issuance more attractive to institutional fixed-income buyers.