Target Hospitality secures $43M multi-year contract for data center accommodations

[Amending a contract. A male hand makes alterations with pen]
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Target Hospitality (NASDAQ:TH [https://seekingalpha.com/symbol/TH]) has signed $43 million new multi-year contract [https://seekingalpha.com/pr/20203310-target-hospitality-expands-strategic-diversification-with-multi-year-contract-supporting] to build and provide services for a data center community in the Southwestern U.S.

The deal, which runs through September 2027, is expected to generate a minimum of $43 million in revenue, with approximately $5 million anticipated in 2025.

Target Hospitality will construct the facility and provide comprehensive support, including premium culinary offerings, facilities management, and comprehensive support services.

Target Hospitality will use a portion of its current assets to construct the data center community. This strategic decision will result in a minimal net capital investment of just $6 to $9 million in 2025.

Target anticipates first occupancy by late 2025 and potential Community expansions to meet growing customer demand in future years.

MORE ON TARGET HOSPITALITY

* Target Hospitality Corp. (TH) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4810940-target-hospitality-corp-th-q2-2025-earnings-call-transcript]
* Target Hospitality raises 2025 revenue outlook to $310M-$320M as data center and government contracts drive growth [https://seekingalpha.com/news/4482307-target-hospitality-raises-2025-revenue-outlook-to-310m-320m-as-data-center-and-government]
* Target Hospitality Q2 2025 Earnings Preview [https://seekingalpha.com/news/4480272-target-hospitality-q2-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Target Hospitality [https://seekingalpha.com/symbol/TH/ratings/quant-ratings]
* Historical earnings data for Target Hospitality [https://seekingalpha.com/symbol/TH/earnings]