Cipher Digital's Colchis (San Angelo) Gets Base Power Nod from ERCOT

Proactive reported: 

Under the Electric Reliability Council of Texas’s Batch Zero procedure, Cipher Digital said 1.1 gigawatts received conditional base-load status, comprising Stingray’s 100 megawatts and Colchis’s one gigawatt. 

That status means ERCOT’s grid study treats the capacity as established.

Power connections still need to be authorized. 

The Colchis site is a joint venture where Cipher Digital expects to own 95 of the equity.  Cipher has been growing its equity stake since it first announced the project in November 2025.  

Cipher Digital essentially beat the competition to the punch around their grid connection.  

Colchis site includes fully executed direct interconnection agreement with American Electric Power for dual interconnection facility.  

The joint venture partner has never been identified.  These guys don't like revealing anything.  Cipher Digital didn't put San Angelo or Tom Green County on their map.  Their description of the project places it in "West Texas."

San Angelo Mayor Tom Thompson thought Colchis might leapfrog the Skybox/Emergent Data Center as the two applications targeted the same power source, the Red Creek substation.  

Colchis, despite being proximate to the Skybox/Emergent site, is not in City limits.  They will need to negotiate access to water, sewage, fire and police services.  I can't imagine they would provide all that themselves.  

Cryptobrifeing noted:

The company is also developing natural-gas laterals capable of supporting up to 2.5 GW of on-site generation. That behind-the-meter generation capacity gives Cipher the ability to power facilities with its own gas-fired generation when grid power is unavailable or uneconomical.

Residents of Northeast San Angelo could have both a data center and power plant near them.

Cipher recently raised $810 million through Stingray Compute LLC secured notes.  Fitch Ratings noted:

Stingray Compute LLC, a wholly owned subsidiary of Cipher Digital, is issuing approximately $810 million of senior secured notes to fund construction of a 70 MW critical IT load (100 MW gross) purpose-built HPC data center in Andrews, TX. The total budgeted project cost is approximately $826 million, including about $735 million of capex, $38 million of capitalized interest during construction, a $45 million DSRA and $8 million in fees and expenses. Sources and uses reflect a 98% loan-to-cost ratio, resulting in $810 million in debt and $16 million in equity contribution net of $64 million of capex reimbursement. 

The data center comprises two phases — a 10 MW Network Hall and a 60 MW Data Hall — with rent commencing for each phase upon its completion. The campus is 100% pre-leased to Amazon Data Services, Inc. under a 15-year triple-net lease with rent payments and operating expenses unconditionally guaranteed by Amazon.com, Inc. (AA-/Stable). The assets, rights, responsibilities, and cash flows of the project are ring-fenced within a bankruptcy-remote special purpose entity.

Colchis may have power in its sights, however financing will be the next big hurdle.  The State of Texas, despite its talk, remains accommodative to data center development.  Locals effectively have no say.