Cipher Mining Gains $3B AI Contract, Google Takes Equity Stake

TLDR:

• Cipher Mining signs $3B, 10-year HPC colocation deal with Fluidstack for AI infrastructure.
• Google receives ~5.4% equity stake in Cipher Mining and backs $1.4B of obligations.
• Barber Lake site set to deliver 168 MW of critical IT load by September 2026.
• Cipher maintains 2.4 GW HPC pipeline, aiming for next-gen AI data center growth.

Cipher Mining has secured a major agreement that positions the company as a leading AI data center developer. The company announced a 10-year colocation deal with Fluidstack to deliver 168 MW of critical IT load. Google will back $1.4 billion of Fluidstack’s lease obligations while receiving a 5.4% equity stake in Cipher. 

The deal carries an initial $3 billion revenue commitment with potential extensions reaching $7 billion. Industry observers see this as a strong move for HPC infrastructure supporting AI growth.

Cipher Mining AI Data Center Expansion

The new agreement covers delivery at Cipher’s Barber Lake site in Colorado City, Texas. The site has 244 MW gross capacity and room for future expansions up to 500 MW. 

Cipher also controls 587 acres surrounding the site to accommodate additional HPC projects. The company expects site net operating margins between 80% and 85%, signaling robust returns on its infrastructure.

Cipher’s CEO, Tyler Page, told sources the deal will accelerate HPC development and strengthen Cipher’s market presence. He added that Google’s participation signals confidence in the company’s pipeline. 

With potential extensions of the agreement, total contract revenue could reach $7 billion. Project costs are estimated between $9 million and $11 million per MW of critical IT load, highlighting the scale of investment required.

The Barber Lake site will power next-generation AI workloads with infrastructure ready by September 2026. Cipher plans to retain full ownership while accessing capital markets for project financing. 

Fluidstack will operate HPC clusters for major AI companies, leveraging Cipher’s energy and space resources. Analysts note that this contract establishes Cipher as a significant AI data center player.

Google Investment and Crypto Implications

Google will acquire warrants to purchase roughly 24 million shares of Cipher common stock. This translates into an approximate 5.4% equity stake subject to adjustments and potential cash settlement. 

The tech giant will also backstop $1.4 billion in Fluidstack lease obligations, supporting project-related debt. Cipher remains the sole owner of the project while leveraging Google’s capital support.

César Maklary, Fluidstack’s co-founder, emphasized that the collaboration will accelerate critical infrastructure for AI computing. The partnership brings together a major HPC developer and a cloud platform with global reach. 

Cipher continues to prioritize its 2.4 GW HPC pipeline for future AI-focused projects. Crypto investors and market watchers see Google’s involvement as a concrete vote of confidence in industrial-scale HPC infrastructure.

The deal’s scale and Google’s investment reinforce the growing overlap between AI infrastructure and crypto mining technology. 

Cipher’s strategic positioning allows it to capitalize on the expanding demand for high-performance compute for AI and blockchain-related workloads. The company now enters a phase of rapid growth with secured funding and a powerful technology partner

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