Cipher Digital has locked down another 10 years of leasing at its Barber Lake data center in Texas, bringing the site's total contracted revenue to more than $9 billion.
A Friday press release said an unnamed AI lab has committed to a 10-year lease at Barber Lake after Cipher's existing 10-year lease with AI cloud computing giant Fluidstack expires. Cipher expects the additional agreement to bring in around $5.2 billion, on top of the $3.8 billion from the Fluidstack lease.
Fluidstack has not even officially started its lease, as Cipher is still building out the space and does not expect rent to begin until it delivers the first data hall sometime before the end of this year. The remaining halls are scheduled for delivery through the first quarter of 2027.
That means the AI lab's lease won't start until the late 2030's if the current timetable holds. It's a long look ahead for a business where computing needs - or even the industry as a whole - could change drastically. At the same time, the lease may also act as a sort of options contract, where the lessee is locking in rates now that could be exponentially higher in a decade.
Cipher has not named the AI lab or disclosed the full terms of the commitment, including whether there are any kinds of cancellation clauses that would allow it to pull out if its plans change.
Cipher Digital started out as a bitcoin mining company, but has been shifting its focus toward AI data center infrastructure over the past couple of years. Starting at the tail end of 2025, Cipher began selling off its stash of 1,500 bitcoins to help fund the pivot. The company still holds 675 BTC worth roughly $54.2 million on its balance sheet.
Earlier this month, it said it was developing natural gas pipeline connections that could support up to 2.5 gigawatts of power at multiple locations.
Cipher shares (CIFR) rose as much as 4% early Friday before reversing course. The stock was down nearly 3% to $17.60 by midday.