Cipher Digital Extends Barber Lake Lease to 20 Years

Cipher Digital Inc. extended the contracted lease term of its Barber Lake data center in Colorado City, Texas, from 10 to 20 years. The expansion follows a lease amendment with Fluidstack and a binding commitment from a leading AI lab to lease the facility for an additional 10 years.

These agreements increase the total contracted revenue at the facility from $3.8 billion to more than $9 billion, with the AI lab contributing approximately $5.2 billion in incremental revenue. The company established a revised phased delivery schedule for the site's data halls, spanning the fourth quarter of 2026 through the first quarter of 2027.

Cipher Digital, Fluidstack, and the AI lab also implemented a cost reimbursement framework. Under the terms, Cipher will cover the first $359.3 million in costs exceeding the initial budget, while the tenant will reimburse 50% of any costs above that threshold over the 20-year term. CEO Tyler Page stated that the commitment demonstrates the long-term utility and strategic relevance of the campus.