Riot Platforms Secures Long-Term Data Center Lease with AMD

Riot Platforms (NASDAQ: RIOT) has finalized a significant deal involving a long-term data center lease with Advanced Micro Devices, Inc. (AMD) at its Rockdale, Texas, site. This agreement marks AMD as the first major hyperscale tenant at the location. Riot completed the purchase of 200 acres at the Rockdale site, replacing its previous ground lease. The acquisition was funded through the sale of approximately 1,080 bitcoin from Riot’s balance sheet, totaling about $96 million.

The deal is designed to secure Riot’s long-term operational control over the site and facilitate large-scale data center development. The property features a 700 MW grid interconnection, a dedicated water supply, and fiber connectivity. Following the announcement, Riot’s stock surged approximately 13%, with shares trading at $18.70.

Under the new lease with AMD, Riot will provide 25 megawatts (MW) of critical IT load in two phases, beginning in January 2026 and completing by May 2026. The initial lease term spans 10 years, with an expected contract value of $311 million. There are options for three additional five-year extensions, potentially increasing total revenue to $1 billion. Furthermore, AMD has the option to expand its capacity by 75 MW and holds a right of first refusal for an additional 100 MW, which could extend its total footprint at Rockdale to 200 MW.

Riot anticipates retrofit capital expenditures for the initial deployment at approximately $89.8 million, or $3.6 million per MW. The lease is expected to generate roughly $25 million in annual net operating income. Riot now possesses over 1,100 acres and 1.7 gigawatts of approved power capacity across its Texas sites, including Rockdale and Corsicana, positioned within the strategic “Texas Triangle” that covers Austin, Dallas, Houston, and San Antonio—key U.S. data center locations.

Riot CEO Jason Les stated that the agreement with AMD affirms Riot’s infrastructure and development capabilities. He also noted it signifies a strategic shift in repurposing bitcoin mining assets for high-performance computing and AI workloads. The company began assessing its sites for AI and high-performance computing applications less than a year ago.

Riot joins other publicly traded bitcoin miners transitioning towards data center leasing in response to increasing mining costs and network challenges. The company plans to continue transforming power capacities at Rockdale and Corsicana for non-mining tenants, aiming to explore further development and leasing opportunities.

No immediate comment was available from AMD regarding the specifics of the agreement. Riot, however, underscores its commitment to expanding its presence in the data center sector, leveraging its existing infrastructure to diversify and secure new revenue streams. The outcome of this strategic pivot remains to be seen, as Riot navigates the evolving landscape of digital infrastructure and computing services.