Cipher Digital Plans $810 Million Junk-Bond Sale to Fund Amazon-Leased Data Center
June 8, 2026
Cipher Digital Plans $810 Million Junk-Bond Sale to Fund Amazon-Leased Data Center
Cipher Digital Inc. is set to raise $810 million through a high-yield bond offering to complete construction of a data center in West Texas that will be leased to Amazon.com Inc. under a 15-year contract, according to a person with direct knowledge of the matter. The transaction underscores the growing role of the junk-debt market in financing artificial intelligence infrastructure tied to major technology firms.
The funds will cover remaining construction costs for Cipher’s Stingray Facility, a computing data center located in West Texas. Amazon has committed to a long-term lease for the facility, a structure that has become increasingly common as smaller developers partner with tech giants to build out capacity for AI workloads. The deal highlights how long-term leases signed by companies such as Amazon and Alphabet Inc. have enabled billions of dollars in project financing for emerging data center operators.
Cipher Digital, formerly known as Cipher Mining due to its origins in cryptocurrency mining, last tapped the bond market in February. At that time, the company raised $2 billion to fund its Black Pearl data center in Texas, a deal that attracted more than $13 billion in orders, reflecting strong investor appetite for AI-related infrastructure debt.
Morgan Stanley, Goldman Sachs Group Inc., Wells Fargo & Co., Banco Santander SA, and SMBC Nikko Securities Inc. are managing the new offering. The bond sale coincides with Amazon’s own marketing of at least C$7 billion ($5 billion) in Canadian dollar bonds on the same day, signaling a busy period for debt issuance in the tech and infrastructure sectors.
The transaction is a clear signal of how the high-yield market is being leveraged to bridge the gap between smaller infrastructure developers and the capital-intensive demands of AI expansion. As tech companies seek to secure computing capacity without bearing upfront construction costs, such lease-backed financing structures are likely to become a mainstay of the data center industry.
Source: investing
