HUT NDR Takeaways: Power-First in a Power-Scarce Market

Research evidence excerpt

HUT NDR Takeaways: Power-First in a Power-Scarce Market

aler and AI lab tenants.

Management frames this bench as a de-risking mechanism that compresses timeline risk and lends

credibility with hyperscalers, particularly relevant given HUT's relatively short track record. HUT

represents a meaningful share of revenue at both Jacobs and Vertiv, and management noted that

Vertiv competitors are actively bidding to win HUT's business, providing a credible vendor bench if

bottlenecks emerge. The Jacobs relationship does not mean HUT is complacent on oversight, with

personnel living on-site at Riverbend monitoring Jacobs' progress. HUT's use of secured partners

supports our confidence in delivery on contracted MW within the underwritten timelines.

NIMBYism as an Industry Headwind: Management characterized NIMBYism as having materially

stepped up across the industry over the past six months. The most concrete example cited

was HUT's Logan Prairie project in Southern Illinois, which has been directly affected by a local

moratorium on data center development. HUT confirmed the project is not dead but is facing a

meaningful headwind. The dynamic is shaping HUT's broader pipeline strategy in two ways: earlier

community engagement on prospective sites, and a tilt toward markets with vertically integrated

utilities and more accommodating business environments, specifically the Upper Midwest and

Southeast. We view rising NIMBYism as a structural headwind for the sector but a relative tailwind

for operators with disciplined site selection and established power relationships.

Supply-Demand Gap Supporting the Leasing Backdrop: Commentary across the NDR reinforced

the supply-demand imbalance for large-format capacity as the dominant tailwind for the space.