Cipher Digital Receives Conditional ERCOT Classifications for 3.2 GW in Texas

Cipher Digital has secured conditional classifications from the Electric Reliability Council of Texas (ERCOT) for 3.2 gigawatts (GW) of power across its proposed projects in Texas. This approval, announced on September 15, allows the company to access 1.4 GW of capacity at two sites, Mikeska and Apollo, even before the necessary transmission infrastructure is fully constructed.

The classification includes 1.1 GW designated as Conditional Base Load, which consists of a 100 megawatt (MW) project at Stingray and a 1,000 MW project at Colchis. Additionally, 2.1 GW is categorized as Conditional Studied Load across four sites, with Mikeska contributing 500 MW, Apollo 900 MW, Stingray Phase II 200 MW, and McLennan 500 MW. The Partial Capacity Load Requirement (PCLR) qualification allows Cipher to utilize the full load at Mikeska and Apollo while accepting the risk of curtailment during periods of grid stress.

Cipher Digital, which has transitioned from a focus on cryptocurrency mining to artificial intelligence (AI) and high-performance computing (HPC) infrastructure, currently operates 807 MW of energized capacity across three sites in Texas. The company is also developing natural-gas laterals that could support an additional 2.5 GW of on-site generation, enhancing its ability to provide power when grid supply is limited or costly. A comprehensive audit scheduled for December 2026 will finalize the classifications and determine the future of these projects.

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Source: KLEA News