TeraWulf has snapped up a massive data center site in eastern Kentucky, the Muskie Data Campus, from Industrial Equity Partners. The 285-acre parcel within the 1,000-acre EastPark Industrial Park is expected to support more than 1 gigawatt of AI and high-performance computing (HPC) capacity — enough to power roughly 750,000 homes. The move comes as the Bitcoin miner’s AI compute revenue surpassed its mining revenue for the first time last quarter.
The Kentucky play
The Muskie campus is TeraWulf’s second major digital infrastructure site in the state, joining the 480-megawatt Justified Data campus in Hancock County. Kentucky Power, an AEP company, is already building a 345 kV substation linked to an existing 765 kV transmission network to serve the new site. Transmission and energy service agreements were signed at closing, and the land is zoned for its intended use with permitting underway.
TeraWulf Chairman and CEO Paul Prager said power and transmission infrastructure are the defining constraints in the market right now — and he’s betting that locking down this site early gives his firm a long-term edge.
AI overtakes Bitcoin
TeraWulf’s HPC-related revenue surged 117% in the most recent quarter. And for the first time, AI compute revenue outpaced what the company made from Bitcoin mining. That shift helps explain why a Bitcoin miner is spending billions on a new campus that won’t come online until the second half of 2028 for the first 500 MW, with another 500 MW targeted by the second half of 2030.
The pivot isn’t unique to TeraWulf. Miners like Hut 8, HIVE Digital, MARA Holdings, and IREN are all chasing AI and HPC workloads as the crypto mining reward landscape gets tighter.
Backed by Google and Morgan Stanley
To fund the expansion, TeraWulf secured a $3 billion financing package arranged through Morgan Stanley. Google is backstopping the debt — a sign that Big Tech sees value in the kind of power-ready infrastructure TeraWulf is building. Despite the spending spree, the company posted a $427 million net loss last quarter, driven by infrastructure investment costs.
Investors didn’t flinch. WULF shares rose as much as 13.6% in early trading and closed up 11% near $26. The stock has more than doubled since January 1, 2026. TeraWulf is now the third-largest holding in the CoinShares Bitcoin Mining ETF (WGMI) at 10.86%.
What’s next
The immediate focus is on permitting and substation construction. TeraWulf expects the Muskie campus to generate construction jobs, long-term skilled employment, and tax revenue for northeastern Kentucky. But the real test will come in 2028, when the first 500 MW is supposed to go live and the company needs to show it can compete with dedicated AI data center operators on power, latency, and uptime.
