Shares of Cipher Digital (CIFR) climbed around 14% on Wednesday, touching a session high of $17.58, after the company a significant update on the power supply status of its AI data center network across Texas. The announcement centered on new grid capacity confirmations from the state's main power operator.

The move came after the Electric Reliability Council of Texas (ERCOT) published results through its Batch Zero evaluation framework, confirming grid capacity of up to 3.2 gigawatts for Cipher Mining Inc.'s (CIFR) data center network. ERCOT operates the power grid that serves most of Texas, and capacity confirmations from the grid operator are a key gating step for large-scale data center projects, where access to electricity is among the biggest constraints on expansion. The company also shared the details on its official X account, outlining new power designations across six sites that together total approximately 3.1 gigawatts.

Two of the sites received Conditional Base Load status. Stingray was approved for 100 megawatts, while Colchis secured a designation for 1 gigawatt. Both designations signal a more established position for the sites in the grid review process.

Four additional sites landed Conditional Studied Load status. That group includes Mikeska at 500 megawatts, Apollo at 900 megawatts, Stingray Phase II at 200 megawatts, and McLennan at 500 megawatts. Among these, Mikeska, Apollo, and Stingray Phase II also carry PCLR status. These designations are interim classifications within ERCOT's review process, with final site determinations still to come.

Sites Already in Service

Three of Cipher's data center sites are already operational. Barber Lake and Black Pearl each run at 300 megawatts, while the Odessa site operates at 207 megawatts. Combined, the three locations account for 807 megawatts of capacity currently in service, forming the operational core of the company's Texas footprint. For scale, the roughly 3.1 gigawatts of new designations across the six reviewed sites is close to four times that in-service total, an indication of how much of Cipher's Texas build-out still sits in the review pipeline.

Two more sites have received full grid approval. Reveille is cleared for 70 megawatts, and Ulysses has been cleared for 200 megawatts.

A Broader Recovery in AI Stocks

Wednesday's rally also drew support from a wider rebound in AI-related names. After a stretch of selling driven by concerns over potential industry regulation, AI stocks were broadly moving higher on the day. The S&P 500 was up 0.2% and the Nasdaq up 0.6% at the same time CIFR was trading near its session peak.

What Wall Street Thinks

Eleven analysts have rated CIFR a Buy over the past three months, and none have issued a Hold or Sell rating. The average price target sits at $30.59, which would represent roughly 75% upside from Wednesday's levels.

CIFR has a 52-week range of $11.01 to $30.14. Wednesday's move pushed the stock well above its recent trading range, with volume hitting 39.4 million shares against an average of 30.9 million. Cipher said it plans to meet the requirements of a full audit of its power plans and will publish final site classifications in December once the review process is complete.