Cipher Digital extends Barber Lake lease to 20 years, adding $5.2B revenue

Cipher Digital Inc. (NASDAQ: CIFR) has extended the lease term for its Barber Lake data center in Colorado City, Texas from 10 years to 20 years, increasing total contracted revenue at the facility from $3.8 billion to over $9 billion, according to a company press release.

The company executed an amendment to its existing lease with Fluidstack and secured a binding commitment from an unnamed AI lab to lease the facility for an additional 10-year term following the conclusion of the original lease. The additional commitment is expected to generate approximately $5.2 billion of incremental contracted revenue under economic terms described as substantially consistent with the existing lease.

The lease amendment establishes a phased delivery schedule, with individual data halls expected to be delivered between the fourth quarter of 2026 and the first quarter of 2027. Rent will commence for each data hall upon delivery, with the first rent commencement expected in the fourth quarter of 2026.

As part of the amendment, Cipher, Fluidstack, and the AI lab established a cost reimbursement framework. Under the agreement, Cipher will bear the first $359.3 million of costs exceeding the initial budgeted amount. The tenant will reimburse Cipher for 50% of any costs above that threshold over the 20-year term, payable as additional rent.

"Extending Barber Lake's contracted life from 10 to 20 years and adding approximately $5.2 billion of contracted revenue reflects the enduring value of the infrastructure we're building," said Tyler Page, Chief Executive Officer of Cipher Digital.

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