Cipher Mining Adds 56 MW in Expansion of 10-Year AI Hosting Agreement with Fluidstack

Davis Polk advised Cipher Mining Inc. in connection with an expansion of its 10-year high-performance computing (HPC) colocation agreement with Fluidstack; the transaction also involved Fluidstack and Google. Under the modification to the agreement, Cipher will deliver an additional 39 megawatts (MW) of critical IT load, supported by a maximum of 56 MW of additional gross capacity, at its Barber Lake site in Colorado City, Texas. With these newly contracted megawatts, Fluidstack will increase the size of its original transaction and will lease the entire 300 MW of capacity at Cipher’s Barber Lake site. The agreement represents approximately $830 million in contracted revenue over the initial 10-year term and includes two five-year extension options. If exercised, these extension options would bring the total contracted revenue for this transaction to approximately $2 billion and approximately $9 billion in total for the entire lease. In addition, Google will backstop an additional $333 million of Fluidstack’s lease obligations to support project-related debt. Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting and aims to be a market leader in bitcoin mining growth, data center construction and as a hosting partner to major HPC companies. Fluidstack is an AI cloud platform that builds and operates HPC clusters for some of the world’s largest companies. Davis Polk advised Cipher Mining Inc. with a team composed by: members of the Davis Polk infrastructure team included partners Brian D. Hirsch, David J. Penna and Michael Davis; counsel Mikaela Dealissia, Nick Soilleux and Saagar Kaul; and associates Jordan Khorshad and Benjamin Montgomery. Members of the Davis Polk team are based in the New York and Washington, D.C. offices.

Cipher Mining Adds 56 MW in Expansion of 10-Year AI Hosting Agreement with Fluidstack

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