Target Hospitality Corp. has secured a $35 million, 25‑month lease and services agreement to build and operate a 250‑bed Power Community in Northern Nevada. The community will support power generation capacity for mining and data‑center projects, with construction slated to finish by June 2026 and operations beginning the same month.
The contract is expected to generate roughly $35 million in revenue over its term and will require an estimated $8‑$10 million in capital investment. It represents about 11% of the company’s last twelve‑month revenue of $314.55 million and is part of a broader $530 million in multi‑year contracts announced in 2025, underscoring a robust pipeline and a strategic shift toward commercial and critical‑minerals markets.
Target Hospitality’s Workforce Hospitality Solutions segment, which includes workforce hubs and data‑center contracts, generated approximately $37 million in revenue in Q3 2025. The Northern Nevada win builds on the company’s existing regional network, established earlier in 2025 for the Thacker Pass workforce hub, and aligns with the launch of the Target Hyper/Scale brand aimed at AI and data‑center customers. The deal demonstrates the firm’s ability to deliver vertically integrated workforce accommodations for high‑growth industrial projects.
CEO Brad Archer highlighted the contract’s role in the company’s growth strategy: “This contract demonstrates our capacity to provide vertically integrated workforce accommodations across various industrial projects and regions.” He added that the win reinforces Target Hospitality’s focus on expanding into AI, data‑center, and critical‑minerals markets while maintaining operational efficiency and cost discipline.
Market reaction to the announcement was positive, with the company’s shares rising modestly after the news. The uptick reflected investor confidence in the company’s expanding commercial customer base and the sizable $530 million in new contracts for 2025, which signals continued momentum in high‑growth sectors.
The contract’s impact on the company’s financial outlook is twofold: it adds a predictable revenue stream that will help offset the Q3 2025 net loss of $0.8 million and the decline in adjusted EBITDA to $21.5 million from $49.7 million in Q3 2024. At the same time, the company has reaffirmed its 2025 revenue guidance of $310‑$320 million and adjusted EBITDA guidance of $50‑$60 million, indicating confidence in sustaining growth while managing cost pressures.
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