Target Hospitality secures $250M data center contract through 2030

Target Hospitality just locked in a $250 million contract with a top-five hyperscaler to house the construction and operations workforce behind a new data center in West Texas. The deal runs through August 2030, covers roughly 1,100 residents, and requires less than $15 million in capital to execute, because the company is repurposing assets it already owns. What Target Hospitality actually does Most people outside the energy and construction sectors have never heard of Target Hospitality. The company builds and operates modular workforce accommodations: essentially self-contained villages with housing, dining, and amenities for workers in remote locations. The West Texas contract targets initial occupancy in Q3 2026, with the company needing only to retrofit existing infrastructure rather than build from scratch. Following the announcement, Target Hospitality raised its full-year 2026 revenue guidance to a range of $435 million to $445 million, with adjusted EBITDA projected between $105 million and $115 million. If the company’s current pipeline scales as expected by mid-2027, it is projecting annualized revenue above $500 million and adjusted EBITDA above $160 million. Part of a...