Hut 8 CEO: AI demand early; data centers cut local energy costs

Asher Genoot, chief executive of Hut 8, said demand for artificial intelligence is at an early stage. He described Honeydade’s plans to build multi-technology energy campuses and data centers that upgrade local infrastructure and optimize power use to lower energy costs.

Hut 8 operates bitcoin mining and high-performance computing infrastructure in North America. Genoot co-founded US Bitcoin Corp., which merged with Hut 8 in 2023; those combined projects include about 730 megawatts of capacity across Texas, Nebraska and New York.

Genoot noted that AI adoption is expanding and that some companies are adding billions in annual recurring revenue as new use cases are deployed. He said the slow start in demand leaves room for companies and investors to scale compute capacity over time.

Honeydade’s sites are being designed to support multiple technologies rather than a single workload. Genoot described energy campuses that combine on-site power generation, manufacturing and data centers to make local power production and consumption more efficient. He explained, ‘You bring generation, so you not only bring the load and the consumption.’

Data center construction often requires upgrades to transmission and distribution systems. Genoot said developers typically pay for line, substation and equipment upgrades, and he argued that those investments can improve grid utilization and capacity for residential and commercial customers, which can put downward pressure on local prices once facilities are online.

On environmental operations, Genoot highlighted closed loop cooling systems used in newer data centers. He said these systems recirculate coolant rather than drawing continuous freshwater, and that overall water use at some data centers can be lower than at typical commercial properties. He noted, ‘We use that closed loop system where we don’t actually use any water on an ongoing basis.’

Genoot raised national security concerns about where compute capacity is located, citing bitcoin mining as an example, and urged that a substantial portion of compute power remain in the United States. He also described a shift in site strategy driven by limits on available power, with developers favoring smaller campuses of roughly five to 50 megawatts because they are easier to site and match to local power availability. He added, ‘You’re going to see a lot more smaller campuses being deployed.’

Genoot said Hut 8’s experience building large projects informed his views on managing power, cooling and community impacts. He called for greater public engagement and enthusiasm around building computing infrastructure in the U.S.