Riot Platforms (NASDAQ: RIOT) has signed a lease agreement with AMD (NASDAQ: AMD) to host AI computers at its Rockdale facility, according to a press release published Friday.
AMD has contracted Riot for 25 MW of capacity valued at $311 million over 10-years.
Riot also purchased the 200-acre property for its Rockdale data center for $96 million. The acquisition grants Riot full ownership of the land and power rights, which includes a 700 MW interconnection to the power grid. Riot funded the transaction entirely by selling approximately 1,080 bitcoin from its balance sheet.
The semiconductor firm has the option to expand the 10-year contract by 75 MW, plus the right of first refusal to add another 100 MW for a total potential capacity of 200 MW. Additionally, AMD holds options for three five year extensions that, if exercised, would bring the total value of the deal to roughly $1 billion. Riot anticipates the initial deployment will contribute approximately $25 million in annual net operating income.
Riot plans to deliver 5 MW of this initial contracted capacity in January 2026, with a target completion date for the full 25 MW of May 2026. The company will retrofit an existing building at the Rockdale site to meet the high-density specifications required by AMD. Riot estimates the capital expenditures for this initial retrofit will be $89.8 million, or $3.6 million per MW.
Riot owns 1.7 gigawatts of power capacity across its Rockdale and Corsicana facilities, and the company intends to convert the full 700 MW of gross power capacity at Rockdale for data center tenants over time.
At the time of publication, Riot is up 13.4% in early trading hours.
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