Cleanspark (NASDAQ:CLSK) said it has signed a 20-year triple-net lease with an unnamed high investment-grade global technology company to convert its Sandersville, Georgia, facility into a high-performance computing data center, marking a major step in the company’s shift beyond Bitcoin mining and into AI infrastructure.
Chief Executive Officer and Chairman Matt Schultz said on the company’s investor update call that the agreement covers the entirety of the Sandersville site, which has nearly 250 megawatts of gross capacity and 175 megawatts of critical IT load. The base lease has a total contract value of approximately $6.6 billion.
Sandersville lease expected to generate $330 million in annual NOI
Schultz said CleanSpark expects approximately $330 million of average annual net operating income from the lease, citing the triple-net structure. Chief Financial Officer and President Gary Vecchiarelli said direct costs are expected to be minimal and that net operating income margins “should be close to 100%.”
The agreement also includes two five-year extension options. If exercised, the total lease term would extend to 30 years and the total contract value would rise to approximately $11.6 billion, according to management.
The company expects the initial data hall to be ready for service in the fourth quarter of 2027, with the remaining data halls ramping into early 2028. In response to an analyst question, Schultz said the remaining data halls are contemplated for completion in the first quarter of 2028.
CleanSpark said it has structured the transaction so that it can continue mining Bitcoin at the Sandersville site until power is transferred to the new data center facility.
Tenant’s preferred contractors to support build-out
Schultz said CleanSpark aligned the project scope with the tenant’s preferred mechanical, electrical and plumbing manufacturer and general contractor. He said the company believes that using vendors familiar to the tenant will help reduce execution, supply chain and construction risk.
During the question-and-answer portion of the call, Schultz said the tenant “made a suggestion” regarding the general contractor based on prior familiarity. He said CleanSpark held extensive discussions with the builder and visited its facilities.
“What we hear are horror stories about projects running over time and over budget and trying to design and deploy a bespoke data center,” Schultz said. He added that the contractor’s familiarity with the tenant and ability to manufacture some MEP components in the United States helps address long-lead and supply-chain risks.
CleanSpark estimates cash capital expenditures for the Sandersville build-out at $10 million to $12 million per critical IT megawatt.
Texas sites enter exclusivity with same counterparty
In connection with the Sandersville lease, CleanSpark said it has entered an exclusivity window with the same counterparty for its Texas assets in Sealy and Brazoria. Schultz emphasized that the process is not complete.
“I want to be clear that we are in an exclusivity window, not at a finish line,” Schultz said.
Management did not disclose pricing, lease terms or the length of the exclusivity period. Schultz said exclusivity periods in the industry can range from 30 to 120 days, but he declined to provide the specific duration for CleanSpark’s agreement.
Vecchiarelli described Sealy and Brazoria as part of an infrastructure hub in Greater Houston and said the Texas assets offer scale, access to ERCOT’s power market and the potential to grow with a tenant over multiple phases and decades. He said CleanSpark acquired nearly 900 megawatts this fiscal year through the Sealy and Brazoria transactions.
Financing expected to rely heavily on project debt
Vecchiarelli said CleanSpark expects to finance “the overwhelming majority” of the Sandersville build-out with project-based financing. He cited recent data center financing transactions that have included high-yield and investment-grade construction financing, as well as cash or equity to complete the capital stack.
As of June 30, CleanSpark had approximately $200 million in cash, nearly 14,000 Bitcoin valued at about $900 million, and an undrawn $400 million Bitcoin-backed revolver, according to Vecchiarelli.
He said financing terms in the market have improved over recent quarters, with higher loan-to-cost ratios and lower interest rates, and added that those trends are closely tied to tenant credit quality. He also said recent project debt financing transactions in the sector have been as much as six times oversubscribed.
Vecchiarelli said CleanSpark intends to minimize equity issuance, calling the company’s stock its “highest cost of capital currently.” He noted that CleanSpark has not raised capital through stock issuance in more than 20 months and has repurchased more than $600 million of its own shares.
Company frames shift as evolution of infrastructure strategy
Management described the Sandersville lease as part of CleanSpark’s evolution from energy management and microgrid capabilities to Bitcoin mining and now large-scale AI data center development.
Vecchiarelli said the company currently has 1.8 gigawatts of contracted power and has “a high degree of confidence” that this will increase to 2.1 gigawatts through the ERCOT review process, with further growth expected through ongoing acquisition and development efforts.
Schultz said Sandersville became attractive for HPC development because its power is already energized and live, the company expanded its land position by 122 acres earlier this year, and CleanSpark has established relationships with the local community and utility.
“Sandersville is the natural anchor for our conversations because all 250 megawatts are currently energized and live,” Schultz said.
The company said it would provide updates as the Sandersville project advances and as discussions regarding the Texas assets progress.
About Cleanspark (NASDAQ:CLSK)
CleanSpark, Inc (NASDAQ: CLSK) is a leading energy software and services company specializing in advanced microgrid controls and distributed energy resource (DER) management. The firm develops proprietary software platforms designed to optimize power flows across on-grid and off-grid installations, integrating renewable generation, battery storage, and traditional generation assets. CleanSpark’s technology is used by utilities, commercial and industrial enterprises, and remote facilities seeking to enhance energy resilience, reduce operating costs, and achieve sustainability goals.
In addition to its core software offerings, CleanSpark provides end-to-end engineering, procurement and construction (EPC) services.
