We advised Cipher Mining on the transaction

Davis Polk advised Cipher Mining Inc. on an expansion of its 10-year high-performance computing (HPC) colocation agreement with Fluidstack. 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. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to the world’s largest HPC companies.

Fluidstack is a premier AI cloud platform that builds and operates HPC clusters for some of the world’s largest companies.

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 DC offices.

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