Cipher Digital said it has extended the contracted lease duration at its Barber Lake data center in Colorado City, Texas, from 10 years to 20 years and lifted total contracted revenue at the site from $3.8 billion to more than $9 billion.
The company said the new 10-year commitment from a leading AI lab is expected to add about $5.2 billion of incremental contracted revenue after the current Barber Lake lease with Fluidstack ends.
Under the revised structure, data halls at Barber Lake are now expected to be delivered in phases from the fourth quarter of 2026 through the first quarter of 2027. The first rent payment is expected in the fourth quarter of 2026, when the first data hall is delivered.
Cipher also said it has set a cost reimbursement framework tied to the amendment and change orders. Under that structure, the company will cover the first $359.3 million of costs above the original budget for the Barber Lake lease. After that threshold, the tenant will reimburse Cipher for 50% of additional costs over the 20-year term.
The company said the expanded commitment reflects the site’s long-term value and extends Barber Lake’s contracted life by a full decade beyond the original lease term. Today the company's shares have moved -1.36% to a price of $18.10. For more information, read the company's full 8-K submission here.
