Fri, Sep 25, 2026
Cipher extends Barber Lake lease to 20 years, over $9 billion contracted
Key points
- Cipher amended its Barber Lake lease with Fluidstack and signed a binding commitment with an unnamed leading AI lab to lease the Colorado City, Texas facility for a further 10 years.
- Contracted lease duration at the site doubles from 10 to 20 years, lifting total contracted revenue at the facility from $3.8 billion to over $9 billion.
- The additional 10-year term is expected to generate approximately $5.2 billion of incremental contracted revenue, on economic terms substantially consistent with the existing Fluidstack lease.
- The amendment sets a phased delivery schedule, with individual data halls now expected to be delivered between the fourth quarter of 2026 and the first quarter of 2027, and first rent commencement expected in the fourth quarter of 2026.
- A cost reimbursement framework has Cipher bear the first $359.3 million of costs above the initial budgeted amount; the tenant then reimburses 50% of any excess over the 20-year term as additional rent, at a contracted rate of return.
Deal amendment
Extension · Fri, Sep 25, 2026View the deal
DealBarber Lake · Fluidstack
Firm term added10 yrs
Options exercised2
Contract value added$5.2B
Site update
| Site | Status | Active | In build | Theoretical |
|---|---|---|---|---|
Barber LakeColorado City, TX Lease term extended from 10 to 20 years; total contracted revenue at the facility rises from $3.8B to over $9B. Phased data hall delivery from Q4 2026 through Q1 2027, with first rent commencement expected Q4 2026. Cipher bears the first $359.3M of costs above the initial budget; tenant reimburses 50% of any excess over the 20-year term. No MW figures disclosed in this release. | Under construction | — | — | — |