Cipher Digital Begins Pipeline Development for 2.5 GW On-Site Power Generation
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Key Takeaways
- Cipher Digital is developing lateral pipelines for up to 2.5 GW of on-site natural gas power.
- The infrastructure is intended to support leasable data center capacity for HPC workloads.
- Power availability is targeted for completion before the end of 2027.
- The company plans to seek grid connections for the new generation to support local grid stability.
Cipher Digital Inc. (NASDAQ: CIFR) has commenced the development of lateral pipelines to deliver natural gas to multiple data center sites. The infrastructure is designed to facilitate "bring-your-own-generation" (BYOG) capacity, supporting the on-site production of up to 2.5 gigawatts (GW) of electricity.
The pipelines will connect Cipher's sites to regional natural gas supplies. The company intends to work with power providers to develop and operate the generation infrastructure, with a target to make the new power capacity available before the end of 2027.
This power generation is intended to support the expansion of Cipher's leasable data center capacity. The company is targeting tenants requiring industrial-scale infrastructure for high-performance computing (HPC) workloads.
Cipher also plans to seek grid connections for the new generation capacity. This effort is intended to provide supplemental power to the local electrical grids in the communities where the company builds its data centers.
