Canadian crypto miner and artificial intelligence (A.I.) data centre operator Hut 8 (NASDAQ: $HUT) is investing $16 million U.S. to upgrade and expand Louisiana’s water system.
Specifically, Hut 8 has entered an agreement with West Feliciana Parish to invest millions to expand local water system capacity in connection with its River Bend A.I. data centre campus.
Hut 8 is in the process of expanding its energy-intensive A.I data centre operations.
The investment will fund construction of a new water well, approximately eight miles of water main, and other system enhancements, according to a news release.
The infrastructure improvements are expected to be finished in the second half of this year, at no cost to Louisiana taxpayers.
Hut 8 said the water system improvements are expected to benefit 4,000 households and 200 businesses in Louisiana.
The investment from Hut 8 aligns with Louisiana’s $750 million Water Sector Program that has been established to fund repairs and upgrades to water systems in the southern U.S. state.
Hut 8 is in the process of bringing its River Bend A.I. data centre campus online, creating 1,000 construction jobs in the process.
The water system enhancements will also help Hut 8’s data centre operations, which use a closed loop cooling system that relies on water outside the Louisiana campus.
Keeping data centres cool and from overheating is a key challenge faced by companies such as Hut 8.
HUT stock has risen 460% over the last 12 months to trade at $96.20 U.S. per share.
