Cipher Digital Inc. has announced an amendment to its lease agreement for the Barber Lake data center facility in Colorado City, Texas. The filing details that the company executed an amendment to its existing lease with Fluidstack USA II Inc., coupled with a binding commitment from a leading artificial intelligence lab to lease the facility for an additional ten years following the conclusion of the current lease.
This agreement extends the total contracted duration of the Barber Lake Facility from ten years to twenty years. As a result of this extension, the total contracted revenue associated with the facility has increased from $3.8 billion to over $9 billion. The additional ten-year commitment is expected to generate approximately $5.2 billion in incremental contracted revenue.
The filing also outlines a revised delivery schedule for the facility. Individual data halls are now expected to be delivered between the fourth quarter of 2026 and the first quarter of 2027. Rent is set to commence for each data hall upon delivery, with the first rent commencement expected during the fourth quarter of 2026.
In connection with the amendment and design modifications, a cost reimbursement framework was established among Cipher Digital, Fluidstack, and the AI lab. Under this framework, Cipher will bear the first $359.3 million of costs exceeding the initial budgeted amount. The tenant will reimburse the company for 50% of any costs above this threshold over the twenty-year term, payable as additional rent, with the calculation designed to provide Cipher with a contracted rate of return on the reimbursed amounts.
