Cipher Digital Inc. (CIFR) stock gained Friday after the company extended the contracted lease term for its Barber Lake data center in Texas and raised total contracted revenue at the site to more than $9 billion.

Cipher said Friday it extended the facility's contracted life to 20 years from 10 years. The agreements increase contracted revenue from $3.8 billion and add about $5.2 billion in expected revenue.

AI Lab Adds 10-Year Commitment

Cipher amended its existing lease with Fluidstack and secured a binding commitment from a leading AI lab.

Under the agreement, the AI lab will lease the facility for another 10 years after the Fluidstack lease expires. The new lease will have economic terms that are substantially consistent with the existing agreement.

Cipher expects the additional 10-year term to generate about $5.2 billion in incremental contracted revenue.

The company said the longer commitment highlights continued demand for large-scale computing infrastructure used for artificial intelligence and high-performance computing workloads.

Barber Lake Delivery Schedule Revised

Cipher also updated the delivery schedule for Barber Lake as tenant requirements continue to evolve.

The company now expects to deliver individual data halls in phases from the fourth quarter of 2026 through the first quarter of 2027.

Rent will begin for each data hall once it is delivered. Cipher expects the first rent payments to start in the fourth quarter of 2026.

The company said it remains on track with the revised schedule.

Cipher Sets Cost-Reimbursement Framework

Cipher, Fluidstack and the AI lab also established a framework for additional project costs tied to change orders.

The company will absorb the first $359.3 million of costs above the Barber Lake lease's original budget.

The tenant will reimburse Cipher for 50% of costs above that level over the 20-year contract period. Those payments will be made as additional rent.

Cipher said the reimbursement formula is designed to provide the company with a contracted return on the reimbursed amounts.

CEO Tyler Page said the extended agreement reflects the long-term value of Barber Lake and the continued demand for hyperscale computing capacity.

Cipher develops and operates industrial-scale data centers designed for high-performance computing and other next-generation workloads.

Price Action

CIFR Price Action: Cipher Digital shares were up 1.80% at $18.42 at the time of publication on Friday, according to market data.