Cipher Digital Inc. (NASDAQ: CIFR) announced on September 25 a set of agreements that extend the contracted lease term at its Barber Lake data center in Colorado City, Texas from 10 years to 20 years, according to the company's press release. The extension lifts total contracted revenue at the facility from $3.8 billion to more than $9 billion.
The company executed an amendment to its existing lease with tenant Fluidstack, paired with a new binding commitment from "a leading AI lab" to lease the facility for an additional 10-year term once the current lease period ends. That additional decade is expected to add approximately $5.2 billion of contracted revenue on its own.
The agreements also set a cost-reimbursement framework for the site: Cipher will absorb the first $359.3 million of any costs that exceed the initial budgeted amount for the lease, after which the tenant will reimburse the company for 50% of further overages, payable as additional rent across the 20-year term.
Data halls at Barber Lake are scheduled to be delivered in phases from the fourth quarter of 2026 through the first quarter of 2027, with individual halls beginning to generate rent as each is delivered. Cipher Digital CEO Tyler Page said the extension "reflects the enduring value of the infrastructure we're building," pointing to the added revenue as evidence of "the long-term utility and strategic relevance of the campus."