Cipher Digital Lands Third Hyperscale Tenant with 15-Year Lease, Secures $200M Credit Facility

Cipher Digital Secures Major Hyperscale Commitment and Financing for HPC Expansion March 25, 2026 In a significant move underscoring the intense demand for high-performance computing (HPC) infrastructure, data center developer Cipher Digital announced today it has secured its third major hyperscale tenant under a 15-year lease agreement. The deal, coupled with a new $200 million revolving credit facility, signals a pivotal phase in the company's strategic pivot from cryptocurrency mining to becoming a dedicated platform for AI and hyperscale workloads. The newly signed lease is with an unnamed investment-grade hyperscale client and involves the development of a new HPC data center at one of Cipher's existing sites. This follows previous commitments from industry giants AWS and Google-backed Fluidstack for the company's upcoming Texas campuses. "This agreement for our third large AI campus reinforces Cipher’s position as a trusted partner to develop high-quality HPC data center infrastructure for the world’s leading companies,” said Tyler Page, Cipher's CEO. The company's operational and development pipeline reveals its scaling ambitions. While it currently has 207MW operating in Odessa, Texas—a legacy crypto mining site—its contracted capacity includes two major Texas projects: the 300MW Barber Lake site on 587 acres and the 300MW Black Pearl site. Furthermore, Cipher lists a substantial development pipeline totaling up to 3.4GW of capacity across seven projects, including the recently acquired 195-acre "Ulysses" site in Ohio. To fund this aggressive growth, Cipher has concurrently secured a $200 million syndicated revolving credit facility with an accordion feature allowing it to expand to $250 million. The facility, which matures in March 2033 and carries interest based on SOFR plus a margin, is led by Morgan Stanley and includes a syndicate of major banks such as JPMorgan Chase, Goldman Sachs, and Wells Fargo. Chief Financial Officer Greg Mumford stated the facility “represents a major step in the evolution of our capital structure,” providing “non-dilutive capital with enhanced flexibility as we continue to scale the business as a leading HPC data center platform.” This dual announcement highlights the capital-intensive nature of the modern data center industry and Cipher's successful repositioning to capture demand from cloud and AI giants. The long-term lease provides stable revenue visibility, while the credit facility offers the financial muscle to execute on its multi-gigawatt project pipeline, marking the company's transition into a formidable contender in the hyperscale infrastructure arena. Source: datacenterdynamics