CleanSpark Inc (NASDAQ:CLSK) shares surged more than 12% after the company announced a 20-year lease agreement for its Sandersville, Georgia data center campus with a high-investment-grade global technology company, marking a major expansion of its data center business.
The agreement is expected to generate approximately $6.6 billion in contracted revenue over the initial 20-year term, with potential revenue increasing to $11.6 billion if two five-year extension options are exercised
Under the triple-net lease agreement, the undisclosed technology company will deploy production-grade infrastructure at CleanSpark’s Sandersville campus for computing workloads. Deliveries are expected to begin in the fourth quarter of 2027, with the initial deployment covering 175 megawatts of critical IT load. The Sandersville campus was selected due to its access to power infrastructure, available capacity for high-density computing and ability to support phased data center development, according to the company.
CleanSpark said the lease includes annual escalators and is expected to deliver a cumulative net operating income contribution margin of nearly 100%, with average annual NOI contribution estimated at approximately $330 million. The company expects landlord project costs to range between $10 million and $12 million per megawatt of critical IT load. The company also announced that the tenant has entered into a letter of intent and exclusivity arrangement covering CleanSpark’s entire Texas portfolio, which includes 718 acres and up to 885 megawatts of secured and planned power capacity.