Target Hospitality Signs Multi-Year Lease for Data Center Campus in Southwestern US.

Target Hospitality Corp. has announced a multi-year lease and services agreement to construct and provide comprehensive facility services and hospitality solutions for a regional data center campus in the Southwestern United States. Target will construct and provide full turnkey support, including premium culinary offerings, facilities management, and comprehensive support services, supporting an initial population of 250 individuals with a potential expansion to 1,500 individuals. First occupancy is anticipated by late 2025.

Target Hospitality Corp. (Nasdaq: TH) has announced a significant strategic move by securing a multi-year lease and services agreement to construct and provide comprehensive facility services and hospitality solutions for a regional data center campus in the Southwestern United States. The agreement, known as the Data Center Community Contract, will see Target Hospitality build and manage the campus, which will initially support 250 individuals, with the capacity to expand to 1,500 individuals. First occupancy is expected by late 2025 [1].

The Data Center Community Contract, with an initial term through September 2027, is anticipated to generate approximately $43 million in committed minimum revenue over its initial term, with $5 million expected to be realized in 2025. Target Hospitality will utilize a portion of its existing asset portfolio for the construction, resulting in a minimal net capital investment of approximately $6 to $9 million in 2025. This move is expected to enhance economic returns and maintain the company's financial flexibility [1].

Brad Archer, President and Chief Executive Officer of Target Hospitality, commented on the agreement, stating, "We are excited to announce this contract and the continued progress on our strategic initiatives. This contract broadens our customer reach and further illustrates our ability to deliver comprehensive hospitality solutions across diverse commercial end-markets. Our unique capabilities provide a critical solution supporting this growing end-market demand, and we believe there are additional opportunities to participate in the rapidly expanding technology infrastructure transformation" [1].

This expansion highlights Target Hospitality's capability to deliver comprehensive turnkey solutions across diverse commercial end-markets. With over $1 trillion in committed technology infrastructure investments announced since January 2025, the company believes there are meaningful opportunities to capitalize on this historic domestic investment cycle [1].

References:
[1] https://www.prnewswire.com/news-releases/target-hospitality-expands-strategic-diversification-with-multi-year-contract-supporting-growing-data-center-end-market-302531703.html