Cipher Digital’s Stingray project is set to bring in about $2.0 billion of contracted revenue under a long-term AWS lease tied to 70 megawatts of critical IT load.
The deal structure calls for approximately $810 million of secured debt at Stingray Compute, with the financing designed to fund construction of the 70 IT MW data center, debt service reserves, interest during construction, reimbursement of prior capital spending and related fees.
The lease economics are spelled out over a 15-year base term, with three additional 5-year extension options. Over that span, the contract is shown at roughly $2.0 billion to $5.7 billion of total lease payments, depending on extensions and ceiling rental rates. Annual rent escalates 3.0%.
The project is presented with about a 100% NOI margin and de minimis operating expenses for Cipher under the triple-net structure. Development cost is listed at $10.5 million per IT MW.
The timing is specific: initial rent is targeted to start on April 1, 2027, with 10 IT MW in the network hall and 60 IT MW in the data hall. The company says the site is in Andrews, Texas.
The financing is built around several protections. Amazon is said to cover construction overruns above the $10.5 million per IT MW cap, and Amazon.com, Inc. fully guarantees base rent and operating expenses. The lease is described as 100% pre-leased capacity with no ability to terminate for convenience after commencement.
On the project’s illustrative post-construction cash flow table, rent revenue is shown at $74 million in year 2, rising to $112 million in year 3, $146 million in year 7, $165 million in year 16, and $41 million in the final year shown. Net operating income follows a similar path, from $74 million in year 2 to $165 million in year 16.
Debt amortization is set to begin after construction completion. The debt balance steps down from $810 million at inception to $783 million, then $737 million, $686 million, $629 million, $565 million, $495 million, $417 million, $331 million, $236 million, $132 million, $19 million, and then zero. Cash available after debt service is shown at $16 million in year 2, increasing to $22 million, $23 million, $24 million, $25 million, $26 million, $27 million, $28 million, $29 million, then $177 million in year 13, before settling at $155 million, $160 million, $165 million and $41 million in later years.
Cipher also says it is developing two larger AI/HPC data centers: a 300 gross MW project at Black Pearl for AWS and a 300 gross MW project at Barber Lake for Fluidstack/Google. Both are said to be on schedule for initial capacity delivery in September 2026. As a result of these announcements, the company's shares have moved 8.24% on the market, and are now trading at a price of $24.30. If you want to know more, read the company's complete 8-K report here.
