Cipher Digital’s third-quarter update highlighted progress in its shift toward high-performance computing data centers, including its first revenue from an HPC lease and a longer lease commitment at its Barber Lake site. The company also reported a conditional power classification for a large project in Texas and began work on infrastructure intended to support additional on-site power generation.
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First HPC lease revenue: Cipher began recognizing lease revenue at Black Pearl after rent commenced. Multiple data halls at Black Pearl and Barber Lake are scheduled to come online through the end of the year.
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Barber Lake lease extended: An amendment adds a second 10-year term directly with a leading AI lab, bringing the lease term to 20 years. Cipher says the amendment increases the site’s contracted revenue to about $9.1 billion, including approximately $5.2 billion in additional rent. Deliveries will be phased to align with the tenant’s deployment of computing capacity, and construction remains on schedule under the amended plan.
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Conditional power classification at Colchis: Through ERCOT’s Batch Zero process, Cipher received a conditional base-load classification for 1 gigawatt at its Colchis site. The announcement also referred to conditional classifications at other pipeline sites but did not specify their details in the available release text.
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Work begins on power infrastructure: Cipher started developing lateral pipelines intended to facilitate up to 2.5 gigawatts of on-site generation for data-center expansion. The announcement describes this as development work, not as generation capacity already built or operating.
The update points to a growing base of long-term contracted revenue at Barber Lake and the start of lease revenue at Black Pearl. The power classifications remain conditional, while the proposed on-site generation depends on infrastructure still under development.