Cipher eyes 900MW data center site outside San Antonio, Texas
Cipher said it delivered first HPC data center capacity early and that rent has started at its San Antonio-area site. The 300MW Black Pearl site is leased to AWS for at least 15 years under a broader $5.5B deal. Cipher also took an option on a new Apollo site near San Antonio with up to 900MW. Q2 2026 revenue was $25M, Adjusted EBITDA -$30M.
How this was made
The 30-second read
Why it matters
The article adds two incremental capacity catalysts: rent commencement at a 300MW Black Pearl site leased to AWS for at least 15 years, and an additional 288-acre Apollo site option near San Antonio that could reach up to 900MW with an ERCOT studied load application.
Market read
Traders may reassess Cipher’s near-to-medium-term capacity monetization path as it reports rent starting at an AWS-leased site and advances a new high-MW Texas option through ERCOT steps.
What to watch
Execution risk (permitting, interconnect, power availability), and the distinction between rent commencement at Black Pearl versus future revenue timing for Apollo could temper near-term valuation impact.
Background
Cipher is pivoted from crypto mining to large-scale data-center development for AI and hyperscale customers, with a Texas pipeline totaling more than 5GW.
Ticker impact
Cipher says it secured a new option site near San Antonio that could support up to 900MW and submitted a studied load in ERCOT.
Near-term sentiment likely positive on growth visibility; magnitude uncertain because details are limited and it is an option, not a contracted build.
The article discloses incremental project development steps (site option, acreage, potential MW, ERCOT process) but provides no signed customer contract for Apollo, limiting immediate earnings impact.
Market effects
Reinforces ongoing hyperscale and AI data-center demand in ERCOT, with continued shift from crypto mining toward AI/HPC colocation and power-heavy builds.
Highlights San Antonio-area power and fiber connectivity as a strategic location for large-scale data-center development.
Supports the broader global theme of data-center capacity buildout, though the disclosure is primarily regional and company-specific.
Counterpoint
Apollo is only an option with limited details, so the market may overprice potential MW until there is a signed customer, financing clarity, and ERCOT approval milestones.
Key entities
- companyCipher
US-listed data-center developer focused on AI/HPC capacity in Texas, formerly Cipher Mining.
- customer/tenantAmazon Web Services
Leases Cipher’s 300MW Black Pearl site for at least 15 years as part of a broader multi-site deal.
- regulator/market operatorERCOT
Grid operator whose updated process is referenced for the studied load application for Apollo.
