Target Hospitality (TH) has secured a new multi-year lease and services agreement for a data center project in West Texas, the company said Wednesday.

The contract is expected to generate about $250 million in revenue through August 2030, Target Hospitality said.

The company will provide modular accommodations and hospitality services for about 1,100 people supporting a top-five hyperscaler's data center development in the Pecos region of West Texas, it said.

Initial occupancy is expected in Q3 2026 and Target Hospitality said it expects to invest less than $15 million to modify existing assets for the project.

Shares of the company were 10% higher in Wednesday premarket activity.