Catalyzes the hydroxylation of the N(6)-(4-aminobutyl)-L-lysine intermediate to form hypusine, an essential post-translational modification only found in mature eIF-5A factor. Essential for organismal viability and plays a role in a wide number of important processes such as cell growth and proliferation, and regulates induction of autophagy and protein synthesis. Has a role in eIF-5A-mediated translational control. [eIF5A protein]-deoxyhypusine + AH2 + O2 = [eIF5A protein]-hypusine + A + H2O Binds 2 Fe(2+) ions per subunit. Protein modification; eIF5A hypusination. In larval imaginal disk and Garland cells. Belongs to the deoxyhypusine hydroxylase family.