Host Digital Inc. (Host Digital (NYSE American: HOST)), a vertically integrated digital infrastructure company, issued a shareholder letter from CEO Harmol Samra outlining its strategy to develop, own and operate RightScaled data centers for artificial intelligence and high-performance computing workloads. The company is targeting facilities with 20 to 100 megawatts of grid power, focusing on sites with existing or near-term power infrastructure to shorten development timelines. This approach positions Host Digital to address the growing demand for AI and HPC capacity, where power availability is a critical constraint.
The company’s Sponsor has four additional sites in its pipeline representing more than 450 megawatts of potential gross power capacity that could be delivered to tenants by the end of 2027. Host Digital said its first project in northeast Oklahoma has a 15-year, take-or-pay lease covering 55 megawatts of gross capacity and approximately $1.25 billion of contracted base-term rent, including 3% annual increases. The company is targeting delivery in the first quarter of 2027 and is working to finalize project financing, design and buildout and system testing. The lease begins with approximately $67 million in contracted first-year rent, while customer renewal options could bring total rent to approximately $3.2 billion over 30 years if all are exercised.
To view the full press release, visit https://ibn.fm/Cozqw. For more information, visit www.hostdigital.ai.
The announcement matters because it signals a maturing model for AI infrastructure: RightScaled facilities that match power capacity to tenant needs, rather than building hyperscale campuses that can take years to energize. By securing long-term, take-or-pay leases with credit-enhanced counterparties, Host Digital aims to reduce revenue volatility while offering tenants turnkey facilities where they deploy their own compute and model layers. The strategy could accelerate the availability of data center capacity for AI training and inference, which has been constrained by power shortages and lengthy interconnection queues.
For industry leaders, Host Digital’s pipeline of more than 450 megawatts suggests a substantial addition to available AI-ready capacity by 2027. The Oklahoma project alone, with its 55 megawatts and $1.25 billion in contracted base rent, demonstrates that investors are willing to back long-duration infrastructure tied to AI demand. If the company executes on financing and buildout, it could provide a template for other developers seeking to convert existing power assets into high-value data center leases.
Host Digital also operates a portfolio of 19 natural and organic grocery stores across six states under brands including Ada’s Natural Market, Paradise Health & Nutrition, Mother Earth’s Storehouse, Greens Natural Foods, Ellwood Thompson’s, and GreenAcres Market. Healthy Choice Wellness Corp.’s natural and organic grocery business continues to operate as a division of the Company following the merger. This dual focus on digital infrastructure and consumer retail is unusual, but it provides diversified cash flows that could support the capital-intensive data center buildout.
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