Cipher Digital entered a series of agreements that increase the lease duration and total contracted revenue of its data center in Colorado City, Texas.

The data center developer said Friday it has entered a binding commitment with a leading artificial intelligence lab to lease the facility for an additional 10-year term following the conclusion of a lease with Fluidstack, which it has amended. The agreements double the contracted lease duration of the data center to 20 years.

The additional commitment with the AI lab will be governed by a separate lease, Cipher said. The company expects the additional commitment to generate about $5.2 billion of incremental contracted revenue, increasing total contracted revenue at the facility to more than $9 billion.

Cipher Digital said the data center's extended contract life and revenue highlights the durability of demand for hyperscale computing capacity.

"Barber Lake was designed as a long-lived, mission-critical asset, and securing a firm commitment that extends well beyond the original lease term demonstrates the long-term utility and strategic relevance of the campus," Chief Executive Tyler Page said.

The stock gained 3.9% to $18.81 in premarket trading Friday. As of Thursday's market close, shares were up 23% year to date.