Target Hospitality Corp. ("Target Hospitality", "Target" or the "Company") (NASDAQ:TH), one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services, today announced a multi-year lease and services agreement ("Data Center Hub Contract" or "Contract") to construct and provide comprehensive facility and hospitality services to a top-five hyperscaler and their development of a data center campus in North Texas ("Data Center Hub" or the "Community").

Target will construct and deliver full‑turnkey support for the Data Center Hub, providing highly customized solutions and elevated hospitality service offerings. The purpose‑built, all‑inclusive Community will be designed to accommodate approximately 4,000 individuals. Construction will begin immediately, with first occupancy expected in the third quarter of 2026 and full completion of the Data Center Hub anticipated in the second quarter of 2027.

The Data Center Hub Contract is expected to provide over $550 million in committed minimum revenue over its initial term of approximately five years, through the first quarter of 2031. The Contract also includes two additional two-year extension options, enabling continuity of services through January 2035. In addition to the committed minimum revenue, the Contract provides potential variable revenue of approximately $20 million to $40 million annually, depending on customer occupancy once the Community is fully constructed.

Target will leverage a significant portion of its existing assets to construct the Data Center Hub, supplemented by new assets tailored to meet the customer's specifications. This combined approach results in an expected net capital investment of approximately $115 to $125 million, with approximately 80% of this capital investment expected to be incurred in 2026.