Cipher Digital Inc. announced that it has extended the lease for its Barber Lake data center, located in Colorado City, Texas, from an original 10-year term to a full 20 years. The extension includes an amendment to the existing lease with Fluidstack and a binding commitment from an unnamed AI lab to lease the facility for another 10-year period after the initial term ends. The AI lab’s lease will contain economic terms substantially consistent with the existing agreement.
The extended lease increases the total contracted revenue associated with the Barber Lake site from $3.8 billion to more than $9 billion. The additional 10-year commitment is expected to generate roughly $5.2 billion of incremental revenue. Under the lease structure, Cipher will absorb the first $359.3 million of any costs that exceed the initial budgeted amount; the tenant will then reimburse Cipher for 50% of further cost overruns, payable as additional rent over the 20‑year term.
Delivery of the data center’s individual halls is scheduled to begin in the fourth quarter of 2026 and continue through the first quarter of 2027, with rent commencing for each hall as it is delivered, starting in Q4 2026. Cipher Digital’s Chief Executive Officer, Tyler Page, said the extension "reflects the enduring value of the infrastructure we're building" and underscores the long‑term demand for the facility.
