Target Hospitality Wins $750M Contract for AI Data-Center Housing

Target Hospitality won a $750 million, 48-month award to provide temporary housing for roughly 3,370 workers building U.S. data centers tied to artificial intelligence. The company expects its “AI Infrastructure Community” to be completed by mid-2027.

The contract covers short-term accommodations for personnel working on AI-related construction projects. Target’s shares rose after the company announced the award.

Target built its business providing temporary camps for oil and gas crews, including deployments in the Permian Basin. The company is applying that model to data-center construction, where rapid site buildouts have increased local demand for worker housing.

The $750 million contract is part of more than $2.0 billion in multi-year awards Target has won since February 2025. About $1.8 billion of that total is in the company’s workforce housing services segment. Target estimates the net capital investment to fulfill the $750 million award at $200 million to $210 million, with approximately 95% of that spending expected in 2026.

Target’s reported results show a net loss of $13 million in the first quarter of 2026 and a decline in adjusted EBITDA. For full-year 2026, the company’s guidance projects revenue of $370 million to $380 million, adjusted EBITDA of $75 million to $85 million, and capital expenditures of $460 million to $480 million. The company expects revenue from the AI housing contract to ramp as the community nears completion around mid-2027 and to sustain for the remainder of the 48-month term. Target plans to deploy roughly $200 million in capital in 2026 to build the facilities ahead of full occupancy.

Target identified execution risks that could affect returns on the upfront investment, including construction delays, permitting challenges and the potential for slower data-center buildout schedules. The existing backlog of multi-year contracts provides a baseline of expected future work.