Data Center Lease Extension
Cipher Extends Texas Data Center Lease to 20 Years in $9B Deal
Anonymous
Cipher Digital has extended the contracted lease horizon for its Barber Lake data center in Colorado City, Texas, from 10 years to 20 years through an amended lease with Fluidstack and a binding commitment from an unnamed AI lab for the subsequent decade. The additional term is expected to add about $5.2 billion in contracted revenue, bringing the facility’s total to more than $9 billion, up from $3.8 billion. Data halls are scheduled for phased delivery from the fourth quarter of 2026 through the first quarter of 2027, with rent beginning as each is delivered. Cipher will cover the first $359.3 million in costs above the original budget; the tenant will reimburse half of further overruns as additional rent over the 20-year term, with payments structured to provide Cipher a contracted return.
Key Points
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The separate lease with the AI lab is expected to have economic terms substantially consistent with Cipher’s existing Fluidstack lease.
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Cipher CEO Tyler Page said the extension demonstrated Barber Lake’s “long-term utility and strategic relevance,” describing it as a long-lived, mission-critical asset.
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Cipher shares rose 3.9% to $18.81 in premarket trading after the announcement; they had gained 23% year to date through Thursday’s close.
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