Host Digital Inc. (NYSE American: HOST), a vertically integrated digital infrastructure company, has issued a shareholder letter from CEO Harmol Samra detailing its strategy to develop, own, and operate RightScaled data centers tailored for artificial intelligence (AI) and high-performance computing (HPC) workloads. The company’s approach targets facilities requiring 20 to 100 megawatts of grid power, prioritizing sites with existing or near-term power infrastructure to accelerate development timelines.
This strategy matters because it directly addresses one of the most pressing bottlenecks in the AI boom: access to scalable, power-ready data center capacity. As demand for AI and HPC surges, companies that can deliver such facilities quickly and efficiently stand to capture significant long-term contracts. Host Digital’s focus on RightScaling—matching facility size to available power—could give it a competitive edge in a market where speed and power availability are critical.
According to the letter, Host Digital’s Sponsor has four additional sites in its pipeline representing more than 450 megawatts of potential gross power capacity that could be delivered to tenants by the end of 2027. That pipeline suggests a substantial growth trajectory beyond the company’s first project, positioning Host Digital to become a meaningful player in the data center sector.
The company’s first project, located in northeast Oklahoma, has a 15-year, take-or-pay lease covering 55 megawatts of gross capacity and approximately $1.25 billion of contracted base-term rent, including 3% annual increases. Host Digital is targeting delivery in the first quarter of 2027 and is working to finalize project financing, design and buildout, and system testing. The lease begins with approximately $67 million in contracted first-year rent, while customer renewal options could bring total rent to approximately $3.2 billion over 30 years if all are exercised.
For investors, the Oklahoma lease provides highly visible, long-term revenue with built-in escalations, reducing cash flow uncertainty. The take-or-pay structure means the tenant is obligated to pay even if it does not fully utilize the capacity, offering downside protection. The potential for renewals extending the contract to 30 years and $3.2 billion in total rent underscores the durability of the revenue stream.
Host Digital’s vertically integrated model—owning and controlling the real estate, power, and data center infrastructure at each site—allows it to offer turnkey facilities where tenants select and deploy their own compute infrastructure and model layers. This contrasts with operators that lease space in third-party facilities, potentially giving Host Digital greater control over costs, timelines, and customer experience.
Beyond its data center operations, Host Digital also operates a portfolio of 19 natural and organic grocery stores across six states under brands including Ada’s Natural Market, Paradise Health & Nutrition, Mother Earth’s Storehouse, Greens Natural Foods, Ellwood Thompson’s, and GreenAcres Market. Healthy Choice Wellness Corp.’s natural and organic grocery business continues to operate as a division of the Company following the merger. For more information, visit www.hostdigital.ai.
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