Google is set to gain the option to purchase a 5.4% stake in Cipher Mining as part of a long-term data center agreement with Fluidstack, an AI computing startup.

Under the deal, Google will guarantee US$1.4 billion of Fluidstack’s commitments to Cipher, which has a 10-year, US$3 billion capacity lease contract.

The agreement allows for two five-year extensions, potentially increasing the total contract value by another US$4 billion.

Cipher, based in New York, operates data centers that have previously supported cryptocurrency mining and plans to use Google’s guarantee to secure financing for expansion.

This marks the second partnership between Google and Fluidstack in two months, reflecting rising demand for AI computing infrastructure.

Shares of Cipher rose as much as 24% in premarket trading following the announcement.

🔗 Source: Bloomberg

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