How Hut 8's $10 million pre-payment to West Feliciana Parish was spent
Hut 8 made a $10 million prepayment to West Feliciana Parish a year early for its St. Francisville AI data center project. This payment, part of a payment in lieu of taxes (PILOT) program, was distributed among the school board, parish government, and sheriff's office. The funds are being used for employee bonuses and road repairs, with larger payments expected in coming years.
Hut 8, an AI data center developer, made a $10 million prepayment to West Feliciana Parish, Louisiana, a year ahead of schedule as part of a payment in lieu of taxes (PILOT) program. This initial payment stems from a lease agreement for the St. Francisville site, where a 450,000 square-foot building is under construction to house billions of dollars worth of technology. The total value of the Hut 8 project is assessed at $10 billion, with $7.5 billion being taxable, which is projected to generate nearly $100 million annually for the sheriff's office, school board, and parish.
The $10 million prepayment was allocated with $5.3 million to the school board, $3.9 million to the parish government, and $800,000 to the sheriff's office. West Feliciana Sheriff Brian Spilman stated he agreed to the smaller amount for his office to prioritize improving retention and recruitment efforts for his 75 employees, who received $8,000 each in bonuses. The school system employees received $7,000 each. Parish President Kenny Hard indicated that some of the parish's funds would go towards road repairs, with a $60 million payment anticipated in the summer of next year and the remainder of the $100 million in 2028. Sheriff Spilman also mentioned an agreement with parish government to take on the responsibility of building a new jail, which was initially his plan for the money.