AMD Partnership Transforms Rockdale Texas into Data Center Hub, Fueling Riot Stock Surge

Riot Platforms (NASDAQ: RIOT) has sealed a landmark deal that reshapes its operational strategy and immediately captured investor confidence. Following the announcement of a comprehensive partnership with Advanced Micro Devices, Inc. (AMD), the mining company’s stock surged approximately 13% to trade at $18.70 per share, reflecting strong market validation of the company’s pivot toward high-performance computing and AI infrastructure.

The agreement marks a critical inflection point for Riot’s portfolio, as the company completed the outright purchase of 200 acres at its Rockdale Texas facility and secured a decade-long data center lease with AMD—the site’s first major hyperscale tenant. This transition from ground lease to fee simple ownership fundamentally alters Riot’s control dynamics and development potential.

Strategic Land Acquisition Unlocks Rockdale Expansion Potential

The $96 million land acquisition at Rockdale Texas was funded entirely through the strategic sale of approximately 1,080 bitcoin from the company’s reserve, showcasing management’s confidence in the data center revenue opportunity versus ongoing mining operations. The land purchase secures permanent operational control and positions Rockdale as a cornerstone asset for large-scale infrastructure development.

The Rockdale Texas site offers compelling technical infrastructure: a 700 MW grid interconnection, dedicated water supply, and comprehensive fiber connectivity. These capabilities form the foundation for AMD’s initial deployment, beginning January 2026, which involves delivering 25 megawatts of critical IT load across two phases, with completion targeted for May 2026. The initial contract spans ten years with an expected value of $311 million, while three five-year extension options could ultimately generate up to $1 billion in cumulative revenue.

Riot projects retrofit capital expenditures of $89.8 million ($3.6 million per MW) for the initial rollout, with expectations for the lease to contribute approximately $25 million in net operating income annually. AMD retains expansion optionality through the right to add 75 MW and a first-refusal right on an additional 100 MW, potentially scaling its Rockdale Texas footprint to 200 MW total.

AMD’s 10-Year Deal Positions Riot for AI and HPC Growth

The partnership reflects broader industry shifts as bitcoin miners face mounting operational pressures from rising electricity costs and increasing network difficulty. Companies like Riot are strategically repurposing underutilized mining infrastructure to monetize data center capacity through enterprise leasing—a more stable revenue model than mining operations.

CEO Jason Les characterized the AMD agreement as validation of Riot’s infrastructure development capabilities and a turning point in the company’s transformation strategy. The company initiated evaluation of its sites for AI and high-performance computing applications less than a year ago, moving with notable speed to materialize the partnership.

Rockdale within the Texas Triangle: A Data Center Hub Strategy

Riot now commands more than 1,100 acres and 1.7 gigawatts of fully approved power capacity distributed across its Rockdale Texas and Corsicana locations, situated roughly 100 miles apart. This geographic portfolio positions the company within the “Texas Triangle”—encompassing Austin, Dallas, Houston, and San Antonio—a region emerging as a critical U.S. data center hub driven by competitive electricity pricing, regulatory environment, and proximity to major urban markets.

The company plans to continue converting power capacity at both Rockdale Texas and Corsicana for non-mining enterprise tenants, actively pursuing additional development and leasing opportunities. This strategic pivot underscores Riot’s transition from single-focus mining operations to diversified infrastructure deployment, capturing value from multiple revenue streams in high-margin segments.