Cipher Mining Secures $3 Billion AI Hosting Deal with Fluidstack, Backed by Google

Cipher Mining Inc. (NASDAQ: CIFR) has signed a landmark 10-year hosting agreement with AI cloud platform Fluidstack, locking in roughly $3 billion in contracted revenue and positioning itself as a major player in the high-performance computing (HPC) data center sector.

Under the deal, Cipher will deliver 168 MW of critical IT load, expandable to 244 MW gross capacity, at its Barber Lake site in Colorado City, Texas. The project is expected to be operational by September 2026. With additional land and expansion potential of up to 500 MW, the site is set to become one of Cipher’s flagship HPC facilities.

The contract includes two five-year extension options, which could lift total revenue to $7 billion over 20 years. Cipher expects net operating income margins of 80–85%, with estimated project costs ranging between $9 million and $11 million per megawatt of critical IT load.

Google steps in as strategic backer

In a notable move, Google will backstop $1.4 billion of Fluidstack’s obligations, supporting project-related debt financing. In return, the tech giant will receive warrants to acquire around 24 million shares of Cipher’s common stock, equivalent to a 5.4% equity stake on a pro forma basis, subject to adjustment. Cipher will retain full ownership of the project while tapping capital markets for additional funding.

Expanding role in AI infrastructure

Cipher CEO Tyler Page called the agreement “transformative,” noting that it cements the company’s momentum in the HPC sector. “We believe this transaction represents the first of several in the HPC space as we continue to scale our capabilities and strengthen our position in this rapidly growing sector,” he said.

Read More:

Bitcoin Sentiment Split as $70K–$100K Predictions Rise, Santiment Says

Fluidstack co-founder César Maklary added that the partnership would accelerate infrastructure development critical to AI companies’ needs: “Together with Cipher Mining, we’re committed to delivering the compute this moment requires.”

Cipher’s broader pipeline now spans roughly 2.4 GW of capacity, with projects increasingly geared toward AI-driven demand for compute power rather than its traditional focus on Bitcoin mining.

Advisors on the transaction included Morgan Stanley (financial advisor), Davis Polk & Wardwell LLP (legal counsel to Cipher), and Cooley LLP (legal counsel to Fluidstack).

Source