Target Hospitality Corp. announced that it has secured a significant long-term contract to assist with the build-out and operation of a significant scale data center campus project located in North Texas, a significant expansion into the growing AI infrastructure sector.

The agreement, with a top-five hyperscaler, includes Target developing and delivering a dedicated residential and service-focused community designed to accommodate thousands of employees working on the construction and operation of the data center campus. The agreement is anticipated to bring in over $550 million in minimum contracted revenue for the five-year agreement.

The announcement demonstrates the growing trend and opportunities emerging from the hyperscale data center construction boom, fueled by the need for AI and cloud computing infrastructure.

Large Scale Workforce Community to Support Data Center Campus Buildout

The agreement includes Target delivering a turn-key “data center hub” that can house up to 4,000 personnel. The agreement includes construction and hospitality/operations management to meet the client’s requirements.

Construction will begin immediately, with the project set to welcome its first occupants in the third quarter of 2026 and full completion scheduled for the second quarter of 2027.

The community’s scale and scope reflect the complexity of hyperscale data center construction, which often requires thousands of workers over multiple years to complete.

Revenue Upside Beyond Base Contract

The contract is for the first quarter of 2031, with options to extend the service into early 2035. Apart from the revenue commitment, Target also stands to earn an additional $20 million to $40 million every year depending on the level of occupancy once the facility is operational.

The company is planning to use its existing assets and newly developed infrastructure to deliver the project to its client. The net capital investment for the project is expected to range between $115 million and $125 million, with the investment spread over 2026.

Positioned for AI Infrastructure Boom

The recent agreement is a clear indication that Target is becoming a major player in delivering large-scale infrastructure for artificial intelligence, energy, and industrial development. The company’s CEO, Brad Archer, termed the agreement a validation of its capacity to deliver highly customized large-scale solutions for complex projects.

The community will play a key role in supporting the ongoing data center construction boom in the region.

The agreement is also a clear indicator that the data center industry is shifting, with workforce logistics and temporary housing becoming a crucial element in delivering these projects. Especially for areas that are growing significantly with hyperscale development.

Expanding Role in Infrastructure Ecosystem

The North Texas project adds to a growing list of contracts in high-demand infrastructure markets. As investment in hyperscale data center development accelerates across the US. Companies like Target play an increasingly vital role in enabling these large and complex projects.

North Texas Data Center Workforce Village — By Target Hospitality Corp.

Project overview

Target Hospitality will construct and operate a purpose-built, all-inclusive workforce community in North Texas for a top-five hyperscaler supporting data center campus development. The community will host approximately 4,000 individuals and provides a full-turnkey solution.

Contract terms

• Initial term of 5 years through Q1 2031, with two 2-year extension options extending to January 2035
• Committed minimum revenue of over $550 million over the initial term
• Additional variable revenue of $20–40 million per annum once fully built out

Capital investment

Net investment of $115–125 million, leveraging existing assets supplemented by new purpose-built assets. Approximately 80% of capital expenditure is expected in 2026.

Timeline

• Construction: underway now
• First occupancy: Q3 2026
• Full completion: Q2 2027