Cipher Takes On $359M Cost Overrun at Barber Lake Data Center

Cointime update: Cipher agreed under a revised lease to absorb the first $359.3 million of costs above the original Barber Lake budget, with the tenant reimbursing half of any excess through additional rent over a combined 20-year contract term plus an agreed return. Management attributed the overrun mainly to signing before design was mature, excessive change orders, low productivity and delayed equipment delivery, not rising equipment prices. Riot said about 70% of Rockdale’s total budget will sit under a guaranteed maximum price contract, while Core Scientific disclosed $4.4 billion in outstanding purchase and construction commitments, mostly expected within 24 months.