Google is deepening its bet on the buildout of artificial intelligence infrastructure, striking a deal that will give it warrants equal to roughly 5.4% of Cipher Mining while helping finance a new high performance computing project.
The arrangement comes alongside a 10 year colocation contract between Cipher and U.K.-based AI cloud provider Fluidstack worth about $3 billion in contracted revenue.
Cipher said it will deliver 168 MW of IT load to Fluidstack at its Barber Lake site in Colorado City, Texas, with first capacity targeted by September 2026.
The site sits on a larger campus with room to expand, and the contract includes optional 5 year extensions that could push the total value above $7 billion.
Google agreed to backstop $1.4 billion of Fluidstack’s lease obligations. In return, Google will receive warrants that, if exercised, would amount to an equity stake near 5.4% of Cipher Mining.
The deal further blurs the line between crypto mining specialists and AI data center operators. Cipher, best known for running industrial scale Bitcoin mining facilities, has been building a pipeline of high power, low cost sites that can be repurposed for compute intensive workloads.
The company now positions itself as a developer of AI-ready capacity, citing about 2.4GW of potential projects as it courts hyperscalers and AI platform partners.
The agreement secures access to additional AI-grade rack space without the long lead times and grid interconnection hurdles that have slowed the broader industry.
Colocation deals with warrant kickers have become a favored structure for Big Tech buyers willing to trade balance sheet support for priority supply in a constrained market for power and land.
10 years of contracted payments from a single customer is rare in the crypto mining world, where cash flows typically swing with Bitcoin’s price and network difficulty.
The structure reduces near-term dependence on self-mining margins and elevates recurring hosting revenue tied to AI demand. If the optional extensions are exercised, that visibility could stretch well beyond the next Bitcoin halving cycle.
Delivering 168MW of critical IT load within the next year will require timely equipment procurement, transformer deliveries, and network upgrades in a supply chain that remains stretched.
Power markets are tighter than a year ago, and lead times for switchgear and cooling gear have lengthened across North America.
Cipher retains ownership of the project and the upside from any future expansion on campus. The company indicated it may use capital markets to fund portions of the build, but the contracted revenue provides a clearer underwriting case for lenders and equity holders.
With a large customer in hand and a marquee technology partner providing credit support, Cipher’s cost of capital could improve relative to pure-play miners that remain tied to spot crypto economics.
