Miama-based high performance computing and cryptocurrency miner, Hut 8 Corp (NASDAQ: HUT) (TSE: HUT) broke ground on its USD$2.5 billion artificial intelligence data center in West Feliciana Parish, Louisiana on Tuesday.
The company is working with Entergy to prepare the substation and switchyard at its River Bend site, a 611-acre parcel off La. 964. Parish officials approved the project in January, projecting thousands of construction jobs and more than 50 long-term technician and maintenance positions.
The first phase of construction will produce two 450,000-square-foot buildings. The company plans to complete the first building by the end of the year, while the second will be finished before the end of 2026. An undisclosed tenant will equip the center with $10 billion worth of computers and other materials, according to Riley Trettel, Hut 8’s senior vice president of data center development.
Kenny Havard, president of West Feliciana Parish, said the data center will generate substantial tax revenue. He hopes this revenue will allow the parish to lower taxes and raise pay for public servants in the future. In addition, Havard plans to use funds to improve the parish’s quality of life, including walking paths and green spaces. “It’s going to be life-changing for the whole community,” he said.
While the parish can levy property taxes from the center, it cannot collect taxes on the center’s computers and electronic equipment. A 2024 Louisiana law exempts data centers from equipment sales taxes. However, Havard said the remaining revenue will still make a meaningful difference for the parish.
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Data centre development aligns with rural development plan
Hut 8 operates Bitcoin mining facilities and data centers at 15 sites across the U.S. and Canada. The company takes its name from the building where pioneering computer scientist Alan Turing developed machines that cracked the Enigma code during World War II. Turing’s work enabled the Allies to intercept German communications, helping U.S. and British forces win key battles.
The development of the River Bend data center aligns with West Feliciana Parish’s Rural Development Plan, a 10-year strategy adopted in 2021. The plan seeks to boost private development while improving streetscapes and public spaces. Havard emphasized that, unlike other parishes chasing residential subdivisions, West Feliciana wants to maintain a rural character. “We don’t have to rely on rooftops,” he said. Instead, the parish focuses on slow, sustained growth through projects like the data center.
West Feliciana imposed a moratorium on large residential development in 2020 to allow time to formulate its development plan. The moratorium was lifted once the plan was adopted, clearing the way for projects like Hut 8’s data center. In addition, the parish anticipates that the center’s economic impact could reverberate throughout the state.
Havard said he envisions a future where West Feliciana sets a model for sustainable growth while generating substantial economic returns.
“It could be the next oil boom if we play our cards right,” Havard said. “It could turn Louisiana around.”
Furthermore, the combination of new jobs, increased property tax revenue, and community improvements could transform the parish’s economic landscape.
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