Google backs $1.4B of obligations and takes 5.4% stake as Cipher expands AI data center footprint
PHOTOCREO Michal Bednarek/Shutterstock and Adobe modified by Blockworks
Cipher Mining Inc. has signed a 10-year high-performance computing (HPC) colocation agreement with Fluidstack, securing approximately $3 billion in contracted revenue.
The deal, announced Thursday, positions Cipher as a significant player in the artificial intelligence infrastructure sector. Cipher, traditionally known for its bitcoin mining operations, will deliver 168 megawatts of critical IT load at its Barber Lake site in Colorado City, Texas, with expected completion by September 2026. The facility could expand to 500 MW, supported by 587 acres of surrounding land.
The agreement includes two optional five-year extensions that would raise the total contract value to $7 billion. Cipher expects net operating income margins of 80% to 85%, with project costs estimated at $9 million to $11 million per megawatt.
Google will guarantee $1.4 billion of Fluidstack’s lease obligations to support debt financing and has secured warrants for an approximately 5.4% equity stake in Cipher, subject to adjustments. Cipher will retain full ownership of the project and may tap capital markets to finance its build-out.
Cipher CEO Tyler Page said the partnership reflects growing momentum in HPC development, while Fluidstack co-founder César Maklary emphasized the deal’s role in supporting frontier AI companies. The announcement comes as data center developers race to secure capacity for AI workloads, with Cipher highlighting its 2.4 gigawatt pipeline.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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