Cipher Digital has signed agreements that extend lease commitments at its Barber Lake data center campus in Colorado City, Texas, to 20 years and raise total contracted revenue at the site from $3.8bn to more than $9bn.

The company announced the deals on September 25. One amends the existing lease held by AI cloud provider Fluidstack. The other secures a binding commitment from an unnamed AI lab to enter a separate ten-year lease once Fluidstack's term ends. Cipher expects the additional commitment to generate around $5.2bn.

The second lease will carry substantially similar economic terms to the Fluidstack agreement, according to the announcement.

"Extending Barber Lake's contracted life from 10 to 20 years and adding approximately $5.2 billion of contracted revenue reflects the enduring value of the infrastructure we're building," said Tyler Page, CEO of Cipher Digital.

What has changed in the delivery schedule?

Cipher now expects to deliver individual data halls between Q4 2026 and Q1 2027, with rent commencing as each hall is handed over. The company attributed the revised schedule to design changes and evolving tenant requirements.

Earlier disclosures had set a tighter timeline: delivery of the initial 168MW phase by September 2026, followed by the additional 39MW phase by January 2027.

How will cost overruns be shared?

The amendment also establishes a cost-sharing arrangement between Cipher and its tenant:

• Cipher will absorb the first $359.3m of costs above the original budget.
• The tenant will reimburse half of any further overruns through additional rent spread over the combined 20-year period.
• That reimbursement is calculated to provide Cipher with a contracted return.

How did Barber Lake reach 300MW?

The original deal between Cipher and Fluidstack, signed in September 2025, covered 168MW of critical IT load. An expansion announced that November added 39MW, bringing the combined critical IT load to 207MW.

Cipher said the expanded agreement covers the entire 300MW of capacity at Barber Lake.

What does the deal mean for Cipher's revenue base?

The September 25 agreements more than double the contracted revenue tied to a single campus. Before the amendment, Barber Lake accounted for $3.8bn in contracted revenue. The new commitments add approximately $5.2bn, pushing the total above $9bn.

The structure also stretches revenue generation across two decades. Fluidstack holds the first lease term; the unnamed AI lab is bound to take a ten-year lease afterward, on substantially similar economic terms. Rent begins as each data hall is delivered, starting between Q4 2026 and Q1 2027.

The cost-sharing clause caps Cipher's solo exposure at $359.3m of overruns, while any additional excess costs are split evenly with the tenant — reimbursed through rent over the full 20-year horizon at a rate designed to give Cipher a contracted return.

For the Texas site, the deal confirms full coverage of its 300MW capacity under long-term contracts, with a tenant lineup that now includes one of the larger AI cloud providers and an AI lab whose identity remains undisclosed.