TeraWulf jumps 11% as data center firm announces 1 GW Kentucky campus

TeraWulf Inc. (NASDAQ: WULF) announced connected May 26 that it acquired a hyperscale high-performance computing improvement tract successful Eastern Kentucky susceptible of supporting much than 1 gigawatt of information halfway capacity. The institution is calling the tract the “Muskie Data Campus” and expects the archetypal 500 MW to statesman ramping successful the 2nd fractional of 2028, with an further 500 MW targeted for the 2nd fractional of 2030.

Shares of WULF jumped implicit 11% successful aboriginal greeting trading hours connected the day, breaking supra $25. WULF is up implicit 120% year-to-date, per Yahoo Finance.

The transaction, structured arsenic a rank involvement acquisition statement with seller Industrial Equity Partners, closed effectual May 22, according to TeraWulf’s Form 8-K filed with the SEC. No acquisition terms was disclosed. The filing said nary third-party consents oregon regulatory approvals were required.

Power and transmission

Power infrastructure is cardinal to the deal. Kentucky Power, an AEP subsidiary, is constructing a 345 kV substation connected to the existing 765 kV transmission network, giving the field redundant utility-scale powerfulness transportation designed to enactment the afloat 1+ GW buildout. TeraWulf said transmission infrastructure and vigor work agreements were executed concurrently with the acquisition nether the Industrial General Service tariff operation for ample loads.

That combination, grid-connected transmission positive executed work agreements, gives TeraWulf a defined pathway to large-scale powerfulness transportation astatine a clip erstwhile the company’s absorption argues powerfulness entree has go the binding constraint for AI and HPC infrastructure.

“The defining constraint successful this marketplace is nary longer computing hardware, it is power, transmission infrastructure, and execution certainty,” Paul Prager, TeraWulf’s president and CEO, said successful the property release. “The Muskie Data Campus straight aligns with that thesis.”

Site readiness

The field sits connected astir 285 acres of owned and controlled onshore wrong the 1,000-acre EastPark Industrial Park, with optional adjacent acreage disposable for aboriginal expansion. TeraWulf said the tract is already zoned for its intended use, permitting activities are underway, and constricted tract enactment is required earlier information halfway operation tin begin.

Those factors constituent to near-term improvement progress, adjacent arsenic the archetypal large capableness remains years away. The 2028 ramp for the archetypal 500 MW and the 2030 people for the 2nd tranche inactive spot revenue-bearing standard respective years out.

Kentucky footprint

Muskie is TeraWulf’s 2nd large integer infrastructure field successful Kentucky, joining the 480 MW Justified Data field successful Hancock County. The institution said Kentucky continues to pull large-scale AI and HPC improvement owed to its vigor infrastructure and engagement from authorities and section stakeholders. TeraWulf said the task has enactment from the Governor’s office, section region leadership, and determination economical improvement authorities.