Prnewswire·2026-02-24 11:45Core Viewpoint - Target Hospitality Corp. is expanding its modular accommodations to support the growing demand for AI infrastructure development, with a new 400-bed community expansion that will significantly increase its capacity and revenue potential [1][2][4]. Group 1: Expansion Details - The Second Expansion will increase the capacity of the data center community to support up to 1,050 individuals, marking a 320% increase from the initial 250-bed community [2]. - The expansion is expected to generate approximately $49 million in committed minimum revenue over its initial two-year term from June 2026 to May 2028 [3]. - Total committed minimum revenue for the Expanded Data Center Community will exceed $130 million, more than three times the initial contract value of $43 million [4]. Group 2: Financial and Operational Impact - The incremental scale from the expansion is anticipated to enhance margin contribution by allowing the company to achieve greater efficiencies from its integrated operating model [4]. - The company plans a net capital investment of approximately $15 to $18 million for the Second Expansion, with completion expected by June 2026 [5]. Group 3: Market Position and Strategy - The expansion reflects the accelerating demand for customized workforce accommodations essential for AI and data center development, positioning the company as a leading provider in this sector [6]. - The company’s rapid response to customer demand highlights the strength of its Hyper/Scale brand and its ability to execute quickly across the data center value chain [7].