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$10 Billion Louisiana Data Center Enters Major Construction Phase

$10 Billion Louisiana Data Center Enters Major Construction Phase
Photo Credit: Unsplash.com

Hut 8 is constructing its River Bend AI data center in West Feliciana Parish, Louisiana, with the first phase representing up to $10 billion in investment. The planned 600,000-square-foot facility is also at the center of a dispute over how specialized data-center equipment should be valued for local property-tax purposes.

Key Takeaways

  • Hut 8 is constructing the River Bend AI data center in West Feliciana Parish, northwest of Baton Rouge
  • The first project phase represents up to $10 billion in investment and includes a planned 600,000-square-foot facility
  • Construction is expected to involve about 1,000 workers at its peak
  • The project is projected to generate about $90 million annually in local property-tax revenue under the parish assessor’s valuation
  • A proposed state assessment method could reduce projected annual property-tax revenue to roughly $45 million

Hut 8 Advances Construction on the River Bend Data Center

Construction is underway on Hut 8’s River Bend AI data center in West Feliciana Parish, Louisiana, with the first phase representing up to $10 billion in investment. The development includes a planned 600,000-square-foot facility northwest of Baton Rouge.

The project adds to a U.S. data-center construction market that is influencing commercial real estate beyond the facilities themselves. A recent analysis of data-center activity found that data-center-adjacent occupiers accounted for more than 6% of leasing activity at logistics properties within five miles of data centers in 2026, up from less than 3% in 2020.

For River Bend, the construction activity is accompanied by a separate issue involving the property’s future taxable value. Different approaches to valuing specialized data-center equipment could substantially affect the annual property-tax revenue associated with the project.

$10 Billion Investment Covers the First Project Phase

The first phase of the River Bend project represents an investment of up to $10 billion. The investment supports construction of the planned 600,000-square-foot AI data center and the specialized infrastructure and equipment required for its operations.

The development is proceeding as construction expenses remain elevated across the commercial property sector. Recent U.S. construction cost data showed nonresidential construction inputs rising 8.9% year over year in August 2026, while copper and steel prices increased 27.2% and 23.4%, respectively.

River Bend’s investment figure reflects the scale of the project’s first phase rather than a broader development total. Its building footprint and specialized equipment will also play separate roles in determining the completed property’s assessed value.

600,000-Square-Foot Facility Takes Shape in West Feliciana Parish

The River Bend facility is planned to cover approximately 600,000 square feet in West Feliciana Parish, northwest of Baton Rouge. Hut 8 is developing the property as an AI data center.

The facility’s physical footprint represents one part of its property value, while specialized data-center equipment represents another. How those assets are classified and valued is central to the property’s local tax assessment.

Construction is expected to require about 1,000 workers at its peak. That figure applies to the construction phase and does not represent permanent employment at the completed facility.

Once developed, the property will contribute to West Feliciana Parish’s tax base. The amount of annual revenue will depend partly on the valuation method applied to the facility and its equipment.

Construction Workforce Reaches About 1,000 Workers at Peak

Construction of the River Bend data center is expected to involve about 1,000 workers at the project’s peak. The workforce reflects the scale of construction associated with the 600,000-square-foot facility and its supporting infrastructure.

Combined with up to $10 billion in first-phase investment, the projected workforce provides another measure of the development’s construction scale. The labor requirement is concentrated in the building phase and is separate from future permanent employment at the data center.

The project’s economic effects therefore extend across different stages. Construction generates temporary workforce activity and capital spending, while the completed facility will become a taxable commercial property with specialized equipment subject to valuation.

Property-Tax Assessment Creates a New Issue for the Project

The property-tax assessment of the River Bend data center has emerged as a separate issue surrounding the development. Under the parish assessor’s valuation, the project is projected to generate about $90 million annually in local property-tax revenue.

A proposed state assessment method could reduce that projected annual revenue to roughly $45 million. The difference centers on how specialized equipment at the data center is valued for tax purposes.

The assessment question is distinct from the project’s announced investment. The up-to-$10 billion figure represents capital associated with the first phase, while the property-tax estimates represent projected annual revenue based on different valuation methods.

For West Feliciana Parish, the method ultimately applied could materially change the amount of revenue generated by the property. The issue places the valuation of specialized data-center equipment alongside construction scale as a significant part of the River Bend project’s local impact.

Frequently Asked Questions

How Much Is the Louisiana Data Center Project Worth?

The first phase of Hut 8’s River Bend AI data center represents up to $10 billion in investment. The project includes a planned 600,000-square-foot facility in West Feliciana Parish.

Where Is Hut 8’s River Bend Data Center Being Built?

The River Bend data center is being constructed in West Feliciana Parish, Louisiana, northwest of Baton Rouge.

How Large Is the River Bend Data Center?

The planned River Bend facility covers approximately 600,000 square feet. It is being developed as an AI data center.

How Many Construction Workers Are Expected at the Project’s Peak?

Construction is expected to involve about 1,000 workers at its peak. This figure refers to the construction workforce rather than permanent employment at the completed facility.

How Could the Project’s Property-Tax Valuation Affect West Feliciana Parish?

The parish assessor’s valuation projects about $90 million in annual local property-tax revenue. A proposed state assessment method could reduce that projected amount to roughly $45 million.

Real Estate Today

Real Estate Today Staff

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