Cipher Secures 20-Year Barber Lake Commitment Worth Over $9 Billion
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Key Takeaways
- Lease term for Barber Lake data center extended from 10 to 20 years.
- Total contracted revenue increased from $3.8 billion to over $9 billion.
- New 10-year lease agreement secured with a leading AI laboratory following Fluidstack's term.
- Phased delivery of data halls scheduled from Q4 2026 through Q1 2027.
- Cipher Digital responsible for first $359.3 million of cost overruns; tenant reimburses 50% of additional costs.
Cipher Digital (NASDAQ: CIFR) said agreements with Fluidstack and an unidentified artificial intelligence lab will extend contracted occupancy at its Barber Lake data center in Texas to 20 years and lift total contracted revenue to more than $9 billion from $3.8 billion.
The arrangements add approximately $5.2 billion in revenue over a second 10-year term, according to the company’s Sept. 25 statement. They also establish a framework under which Cipher will bear the first $359.3 million in costs above the project’s original budget.
Cipher amended its existing 10-year lease with Fluidstack and secured a binding commitment from the AI lab to lease the Colorado City facility for the following decade. The additional term will be governed by a separate lease with economic terms substantially consistent with the Fluidstack agreement.
The agreements extend the project’s revenue horizon while leaving Cipher with a substantial share of additional construction costs. Beyond the initial $359.3 million in overruns, the tenant will reimburse half of further excess costs through additional rent over the combined 20-year term. Those payments will be calculated to provide Cipher with a contracted return on the reimbursed amounts.
