Target Hospitality Expands Data Center Community!

THE WOODLANDS, Texas, November 17, 2025 - Target Hospitality Corp. ("Target" or "Company") (Nasdaq: TH), one of the largest modular accommodation and valued hospitality services providers in North America, announced the completion of a 400-bed expansion to its 250-bed data center community.

This expansion represents a 160% increase over the initially specified community size and creates a specially designed community that can support 650 individuals. Additionally, this community is capable of expanding to accommodate up to 1,500 individuals as needed.

It is known that the expansion will initially provide a minimum committed revenue of $40 million. This expansion contract covers a two-year period that will extend until March 2028, with the option to extend the existing contract for four additional one-year terms thereafter. Thus, the continuity of the contract will be established until March 2032.

The expansion contract boosts the total contract value for the Expanded Data Center Community by approximately $83 million in committed minimum revenue, representing more than a 90% increase over the initially specified $43 million value.

Target plans to leverage part of its existing asset portfolio to complete the Expansion, which is expected to require a capital investment of approximately $10 to $15 million. The company will begin construction on the expansion in the fourth quarter of 2025, with an estimated completion date in the first quarter of 2026. This decision demonstrates Target's ability to meet broad market demand by utilizing its existing assets and its capability to enhance its contract portfolio.

The speed of Target's customer activities highlights the increasing demand for customized hospitality solutions. This demand is critical for the development of artificial intelligence and data center infrastructure. To support this rapidly growing sector, Target is also engaging in advanced discussions about other potential commercial opportunities. Target's ability to deliver rapid solutions to the market positions the Company as a critical part of the data center value chain, creating strategic growth opportunities.

Brad Archer, President and Chief Executive Officer, stated, "We are excited to support our customers' increasing demand and provide vital solutions that contribute to the success of this data center project. The 160% increase in community size within three months is a remarkable development that exceeds our expectations. Our ability to respond to this accelerated demand demonstrates the advantages of our integrated accommodation platform and the unique capabilities of our Target Hyper/Scale brand. We believe these attributes position Target as a key partner in this industry and a leading provider of customized hospitality solutions supporting the rapidly expanding artificial intelligence and data center end markets.”

Target Hospitality is one of North America’s largest providers of integrated modular accommodation and valued hospitality services in the United States. The Company is building and operating a customized and growing community network for various end-users, offering a range of value-added solutions such as premium food service management, concierge, laundry, logistics, security, and recreation facilities services.