TeraWulf Acquires 1 GW Kentucky AI Data Center Site, Shares Jump 11%

TeraWulf Inc. (Nasdaq: WULF) made headlines on Tuesday with the announcement of its acquisition of a hyperscale data center development site in eastern Kentucky. The purchase of the “Muskie Data Campus” from Industrial Equity Partners marks a significant move for the company as it expands its presence in the artificial intelligence and high-performance computing infrastructure market.

Situated within the 1,000-acre EastPark Industrial Park in northeastern Kentucky, the Muskie Data Campus spans approximately 285 acres of owned and controlled land. With the capacity to support over 1 gigawatt of AI and HPC operations, the site is projected to power around 750,000 homes. The first phase of 500 megawatts is slated for completion in the second half of 2028, with an additional 500 megawatts expected by the second half of 2030.

Kentucky Power, a subsidiary of AEP, is currently constructing a 345 kilovolt substation that will be connected to an existing 765 kV transmission network to serve the campus. Transmission infrastructure and energy service agreements have been finalized, providing a clear path for long-term, large-scale power delivery. The site is also in the process of obtaining the necessary permits for its intended use.

Paul Prager, TeraWulf’s Chairman and CEO, emphasized the importance of power, transmission infrastructure, and execution certainty in the current market. He highlighted Muskie’s unique combination of scalable power, robust transmission infrastructure, development readiness, and strategic regional positioning as key factors that set it apart from competitors.

This acquisition marks TeraWulf’s second major digital infrastructure campus in Kentucky, complementing its existing 480-megawatt Justified Data facility in Hancock County. The company’s focus on power infrastructure and digital infrastructure development has enabled it to secure sites like Muskie ahead of its rivals.

TeraWulf’s venture into AI compute has been met with success, with HPC-related revenue increasing by 117% in the latest quarter, driven by the Lake Mariner facility in Western New York. AI compute revenue surpassed Bitcoin mining revenue for the first time in Q1, reflecting the company’s strategic shift towards high-performance computing. Despite a net loss of $427 million due to increased infrastructure investment spending, TeraWulf secured a $3 billion financing package through Morgan Stanley, with Google providing debt backing.

Following the announcement, WULF shares surged by 11%, reaching nearly $26 per share, the highest level in three weeks. The stock has more than doubled since the beginning of the year. TeraWulf’s position as the third-largest holding in the CoinShares Bitcoin Mining ETF (WGMI) also contributed to a 4.5% increase in the ETF’s value.

In a sector where Bitcoin miners are transitioning towards AI and HPC infrastructure due to declining margins, TeraWulf’s strategic expansion into this space positions it well for future growth. The Muskie campus is expected to create construction jobs, long-term employment opportunities, and tax revenue for northeastern Kentucky, garnering support from the Governor’s office and local economic development agencies.

As TeraWulf continues to strengthen its foothold in the AI and HPC market, its acquisition of the Muskie Data Campus signals a promising future for the company’s digital infrastructure development.