Host Digital Inc. (NYSE American: HOST) issued a letter to shareholders on September 29, 2026, from Chief Executive Officer Harmol Samra. The filing, submitted as an -K with Exhibit 99.1, provides an overview of the company’s business model and strategy following its recent merger and public listing.
The company describes itself as a vertically integrated digital infrastructure firm that develops, acquires, owns, and operates institutional-quality data centers for artificial intelligence and high-performance computing workloads. Host Digital provides the buildings, power, cooling, and supporting infrastructure under long-term take-or-pay leases, focusing on the real estate and power infrastructure rather than the customer's computing equipment.
Samra outlined a strategy centered on a “RightScaled” approach, targeting facilities with 20 to 100 megawatts of grid power. The company prioritizes sites with existing infrastructure or a clear path to power to shorten delivery timelines. The CEO noted that the company’s Sponsor has four additional sites in its pipeline with more than 450 megawatts of potential gross power capacity, which could be delivered by the end of 2027.
The letter details the company’s first project, located in northeast Oklahoma. The site features an existing industrial building and a utility-owned electrical substation. Host Digital has acquired the electrical service agreements for the site and signed a 15-year lease with a customer for 55 megawatts of gross capacity, resulting in 43 megawatts of critical IT capacity. The lease includes approximately $1.25 billion in contracted base-term rent with 3% annual increases.
The company expects the first year of rent to be approximately $67 million. To fund the buildout, Host Digital is pursuing a loan secured by the site and its lease, with repayment derived from rental income. The company has invested approximately $40 million in cash into Site I to date and raised an additional $17.5 million through a recent offering before fees and expenses. The company is targeting delivery of the facility in the first quarter of 2027.
The letter also addressed the company’s growth pipeline through a Preferential Rights Agreement with its privately held Sponsor, Host Infrastructure Holdings. This agreement grants Host a 24-month period to make the first offer on qualifying Sponsor projects. The Sponsor is owned and controlled by the company’s founders, including Samra, and is expected to receive most of its payment in Host shares.
