Amazon Expands Into AI-Powered Data Centers Through Cipher Mining
Cipher Mining’s shares soared over 34% after announcing a 15-year, $5.5 billion data center lease agreement with Amazon Web Services (AWS). The deal marks a major milestone for both companies, highlighting the growing convergence between Bitcoin mining operations and artificial intelligence (AI) infrastructure development.
Under the agreement, Cipher will supply turnkey space and power solutions for Amazon’s AI workloads in two phases, beginning in July and August 2026. The announcement fueled a market rally, with Cipher’s stock climbing from $18.65 to a peak of $25.02, before closing at $22.76.
Bitcoin Miners Shift Toward AI and Cloud Infrastructure
After the April 2024 Bitcoin halving, which reduced mining rewards to 3.125 BTC, profitability across the sector fell sharply. In response, Bitcoin miners have begun leveraging their vast energy infrastructure for AI and high-performance computing (HPC).
“We’re witnessing a structural shift in the mining industry,” said crypto infrastructure analyst David Heller, noting that AI hosting now offers miners higher and more stable returns than traditional Bitcoin mining.
Cipher reported a net loss reduction to $3 million in Q3, down from $46 million previously, while adjusted earnings rose to $41 million — further reflecting its transition to diversified revenue streams.
Google, Microsoft, and Amazon Deepen Ties With Crypto Infrastructure
Cipher’s collaboration with Amazon follows its earlier $3 billion data center partnership with Fluidstack and Google, where Google acquired a 5.4% stake in Cipher Mining. CEO Tyler Page described the new Amazon partnership as “a major step forward”, emphasizing that the company is now “firmly positioned within the AI and HPC ecosystem.”
Meanwhile, IREN, another leading miner, secured a $9.7 billion GPU cloud services deal with Microsoft, and TeraWulf announced a $3.7 billion hosting agreement with Fluidstack.
These alliances signal a broader trend: tech giants are integrating with Bitcoin miners to meet escalating AI data demands. As the AI revolution accelerates, miners like Cipher are emerging as essential partners in powering the next generation of AI-driven computing infrastructure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.