Cipher, the cryptocurrency mining firm pivoting into large-scale data center development, has brought one of its Texas facilities online ahead of schedule and revealed plans for a new campus in the Lone Star State, signaling an acceleration of its transformation into a dedicated infrastructure provider for AI and hyperscale customers.
As part of its second-quarter business update this week, Cipher said it began delivering data center capacity at the site at the start of August, two months earlier than originally planned. The early delivery marks a significant milestone for the company as it works to reposition itself amid a broader industry shift toward high-performance computing workloads.
“We are proud to have delivered our first HPC data center capacity ahead of schedule and announce that rent has commenced at the site,” said Tyler Page, Cipher CEO. “This accelerated delivery proves we can execute at scale, with speed, and without compromise in a challenging environment. As we continue to acquire new sites and sign new deals, our foundation of disciplined execution is what truly sets us apart.”
The 300MW Black Pearl site is leased to Amazon Web Services for a minimum term of 15 years, part of a broader agreement with AWS valued at $5.5 billion across multiple facilities. First announced in October 2024, the site saw 150MW of Bitcoin mining capacity go live last year, but is now being repurposed to support HPC and AI workloads. Cipher reported Q2 2026 revenues of $25 million and adjusted EBITDA of negative $30 million, reflecting the heavy investment phase of its pivot.
This week also saw Cipher announce it has secured an option on a new site called Apollo, located within 25 miles of San Antonio, Texas. The property spans approximately 288 acres and could support up to 900MW of data center capacity, though further details have not yet been disclosed. Cipher said an application has been submitted as a studied load in Batch Zero through ERCOT’s updated interconnection process, positioning the project for potential grid integration.
“The site's flat, buildable terrain makes it well-suited for large-scale data center development, and its proximity to San Antonio positions it favorably for fiber connectivity,” the company said. “Cipher moved quickly to secure the option, reflecting the Company's ability to identify and act on attractive opportunities as they arise in the market.”
Cipher was spun off from Bitcoin mining hardware giant Bitfury in March 2021 and went public via a merger with blank-check company Good Works Acquisition Corp. Formerly known as Cipher Mining, the company rebranded as Cipher Digital as it shifted away from cryptomining toward large-scale data center sites for AI and hyperscale clients. Its development pipeline now totals more than 5GW across multiple projects in Texas, with tenants including AWS and Google-backed Fluidstack.
The rapid pace of site acquisition and early delivery underscores the competitive dynamics in the North American data center market, where demand for AI-ready capacity continues to outstrip supply. Cipher’s ability to secure power, land, and long-term hyperscale commitments will be critical as it seeks to establish itself among the region’s emerging infrastructure developers.