• Host Digital signed a 15-year take-or-pay lease for 43MW of IT capacity at its northeast Oklahoma data centre, representing about $1.25bn in base-term revenue
  • The site already has power, but Host Digital expects to hand the contracted capacity to the tenant in the first half of 2027

The fact

Host Digital Infrastructure has signed a 15-year lease for 43MW of IT capacity at its data centre in northeast Oklahoma. Healthy Choice Wellness Corp, which has agreed to merge with Host Digital, announced the deal on 31 August. The tenant is an unnamed privately held cloud infrastructure company.

The lease is structured as take-or-pay and is worth about $1.25bn over its initial 15-year term. Renewal options could extend the agreement to 30 years and increase its total value to about $3.2bn, but only if the tenant chooses to renew.

The Oklahoma site already has utility power, but the 43MW is not expected to be handed over to the tenant until the first half of 2027. Host Digital will provide the building, power and cooling, while the tenant will install its own computing equipment. The company has not said how much work remains before the capacity is ready for the customer.

The assessment

Host Digital already has a tenant for the 43MW, although the capacity is not yet ready for use. The company now has to complete the remaining work and hand over the space in the first half of 2027. Host Digital will provide the building, power and cooling, while the tenant will install and operate its own computing equipment.

Host Digital’s responsibility continues after the handover. The lease allows the tenant to pay less rent during outages, so keeping the power and cooling systems running will have a direct effect on the revenue Host Digital receives. For BTW readers, the next step is the handover of the 43MW, not another lease announcement. The $1.25bn agreement covers the initial 15-year term, while the larger $3.2bn figure depends on the tenant choosing to renew beyond that period.

What to Watch

The next milestone is Host Digital's handover of the 43MW in the first half of 2027 and the start of rent under the lease. Further details on the remaining electrical, cooling and tenant-specific work would clarify what still needs to be completed before the customer can install and operate its equipment.