The deal, valued at roughly $3 billion, will see Cipher deliver 168 megawatts (MW) of IT capacity at its Barber Lake site in Texas by September 2026.
The site, which sits on 587 acres and has the potential to scale up to 500 MW, will be dedicated to serving AI workloads and enterprise compute needs. If both five-year extension options are exercised, the agreement could ultimately generate as much as $7 billion in revenue for Cipher.
Adding to the momentum, Google has committed to backstop $1.4 billion of Fluidstack’s lease obligations, a move designed to support financing for the massive build-out. In return, Google will gain warrants representing around a 5.4% equity stake in Cipher. Despite the arrangement, Cipher will keep full ownership of the project and pursue capital markets for additional funding as needed.
Cipher’s CEO Tyler Page described the deal as a “transformative step” that positions the company as a major player in the AI data center industry. He added that the agreement is expected to be the first of many as demand for HPC infrastructure continues to climb.
For Fluidstack, the partnership reflects its push to deliver computing capacity at scale for leading technology companies. Co-founder César Maklary said the collaboration ensures critical infrastructure for AI firms that depend on ever-expanding computing power.
Cipher is currently advancing a 2.4-gigawatt pipeline of data center projects, prioritizing sites for HPC deployments alongside its existing bitcoin mining operations. With Google’s support and Fluidstack’s commitments, the company has signaled its intent to become a central force in the AI data center race.
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