Riot Platforms $28 billion lease ties power cuts to Anthropic consent

Riot Platforms’ lease agreement with AI company Anthropic for 910 megawatts of critical IT capacity in Corsicana, Texas, became binding on November 4, establishing a requirement for tenant consent before the company can voluntarily curtail the tenant’s power load. The agreement, signed on October 28, imposes specific operational restrictions on Riot’s ability to manage electricity consumption at the site, a practice the company has previously used to optimize its mining operations during peak demand periods in Texas.

Consent for voluntary curtailments

Under the terms disclosed in Riot’s quarterly filing, the company must obtain Anthropic’s consent to curtail the tenant’s load or enroll the premises in voluntary demand-response programs. This requirement applies to voluntary actions taken by Riot. Mandatory orders issued by the utility or grid operator remain exempt from the consent requirement, allowing Riot to comply with grid stability mandates without prior approval from the tenant.

The restriction alters the operational flexibility Riot has maintained in its Texas portfolio. The company’s mining strategy has included voluntarily reducing consumption at its Rockdale and Corsicana facilities during Texas summer peaks. Riot reported $25 million in companywide power-curtailment credits in the third quarter, with peak-demand transmission savings further lowering subsequent-year bills. The new lease terms mean that any voluntary reduction in power to the Anthropic load now requires a bilateral agreement, potentially limiting the miner’s ability to capture similar credits or manage grid exposure at this specific site.

Contract value and delivery timeline

Riot’s earnings presentation values the initial-term contract revenue at approximately $28 billion. This figure includes annual escalators and is calculated before the amortization of tenant reimbursements. The company clarified that this value spans future lease revenue and does not represent cash already received or current profit. The contract’s financial structure is tied to the physical delivery of capacity, which is scheduled in phases through July 2028.

The first block of capacity is targeted for delivery on June 28, 2027. The full 400 MW first phase is due in September 2027. A second phase of 200 MW is targeted for January 2028, with the final 310 MW phase scheduled for July 2028. Base rent begins at $130 per kilowatt of delivered critical IT capacity per month, with a 3% annual increase. Rent commences pad by pad as capacity is delivered, with payment becoming independent of utilization once the capacity is live and rent has started.

Riot is responsible for building the site and power infrastructure and maintaining that infrastructure. Anthropic bears the costs for electricity, taxes, insurance, and site expenses. The company estimates roughly $5.5 billion in hard costs for the project, which includes site work and reimbursements for tenant modules. Riot must reimburse Anthropic for eligible module costs up to $4 million per megawatt of critical IT power actually achieved, subject to financing on market terms. If financing is unavailable, Riot will credit Anthropic’s rent instead, with those credits amortizing the reimbursement plus 12% annual interest over the remaining initial term.

Delays in capacity delivery trigger financial penalties. If capacity is more than 60 days late, escalating rent credits apply, capped at 270 days of base rent for undelivered blocks in the relevant phase. A phase delayed beyond 270 days can be terminated on 30 days’ notice, subject to cure rights and extensions for force majeure or tenant-caused delays.