Riot Platforms Lands Massive Data Center Lease with AI Lab for $9.1 Billion
Riot Platforms (NASDAQ: RIOT) has secured a significant 20-year data center lease for its Rockdale campus, with a leading frontier AI lab set to occupy 191 MW of critical IT capacity. The agreement is expected to generate $9.1 billion in contract revenue over the initial term, with a total potential value of $16.1 billion if both five-year extensions are exercised.
The lease includes an estimated cumulative net operating income (NOI) of $7.3, $8.2 billion over the base term, averaging $365, $411 million annually. Morgan Stanley will provide a $573 million interim financing facility to support initial development costs, which is expected to be repaid by investment-grade credit.
The news has sent Riot's stock price surging 12.15% in the wake of the announcement. The company reported second-quarter revenue of $174.2 million, up 14% year-over-year, including $23.2 million from its Data Center segment and $113.7 million from Bitcoin mining.