Target Hospitality expands data center accommodation project by 400 beds

THE WOODLANDS, Texas - Target Hospitality Corp. (NASDAQ:TH) announced Monday a 400-bed expansion to its previously disclosed data center accommodation project, bringing the total capacity to 650 beds. The $627 million market cap company, whose shares currently trade at $6.29, is making this strategic move despite experiencing a 34.92% decline in stock price year-to-date.

The expansion represents a 160% increase from the initial 250-bed community and is expected to generate approximately $40 million in committed minimum revenue over its initial two-year term through March 2028, according to a company press release. The contract includes four one-year extension options through March 2032.

With this addition, the total contract value for the expanded data center community increases to approximately $83 million in committed minimum revenue, a 90% increase from the original $43 million contract.

Target will utilize existing assets to complete the expansion, requiring a capital investment of approximately $10-15 million. Construction is scheduled to begin in the fourth quarter of 2025, with completion anticipated in the first quarter of 2026.

"We are excited to support the rapid growth in our customers’ demand and provide vital solutions that contribute to the success of this data center project," said Brad Archer, President and CEO of Target Hospitality.

The company indicated it is in advanced discussions regarding other potential commercial opportunities to support data center infrastructure development.

Target Hospitality provides modular accommodations and hospitality services across North America, offering customized workforce housing solutions that include food service management, concierge services, laundry, logistics, security and recreational facilities.

In other recent news, Target Hospitality Corp reported its third-quarter 2025 earnings, which exceeded revenue expectations. The company achieved a revenue of $99 million, surpassing the forecasted $85.3 million. Additionally, Target Hospitality reported an earnings per share (EPS) of -$0.01, which was narrower than the anticipated -$0.06. These results highlight a significant improvement in the company’s financial performance. While the stock’s pre-market movement is not discussed, the earnings report itself indicates a positive trend. This development is noteworthy for investors monitoring the company’s financial health.

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