TeraWulf Inc. (Nasdaq: WULF) announced Tuesday the acquisition of a hyperscale data center development site in eastern Kentucky, a move that sent shares climbing 14% at times today as investors responded to the company’s deepening push into artificial intelligence and high-performance computing infrastructure.
The new “Muskie Data Campus,” purchased from Industrial Equity Partners, sits within the 1,000-acre EastPark Industrial Park in northeastern Kentucky and encompasses roughly 285 acres of owned and controlled land.
The site is expected to support more than 1 gigawatt of AI and HPC capacity — enough to power approximately 750,000 homes. The first 500 megawatts is targeted to come online in the second half of 2028, with an additional 500 megawatts set for delivery by the second half of 2030.
Kentucky Power, an AEP company, is constructing a 345 kilovolt substation connected to an existing 765 kV transmission network to serve the campus. Transmission infrastructure and energy service agreements were executed at closing, establishing what TeraWulf described as a clear pathway to long-term, large-scale power delivery. The site is zoned for its intended use, with permitting underway.
“The defining constraint in this market is no longer computing hardware — it is power, transmission infrastructure, and execution certainty,” said Paul Prager, TeraWulf’s Chairman and CEO. “Muskie combines scalable power, robust transmission infrastructure, development readiness, and strategic regional positioning in a way that is difficult to replicate.”
The acquisition marks TeraWulf’s second major digital infrastructure campus in Kentucky, joining its 480-megawatt Justified Data campus in Hancock County. The company bills itself as a “power infrastructure company that builds digital infrastructure” — a distinction Prager said underlies TeraWulf’s ability to secure sites like Muskie ahead of competitors.
TeraWulf’s AI compute is beating out Bitcoin mining revenue
The deal arrives as TeraWulf’s HPC-related revenue surged 117% in the most recent quarter, driven by its Western New York Lake Mariner facility, one of North America’s largest HPC campuses. AI compute revenue outpaced Bitcoin mining revenue for the first time in Q1, though the company posted a $427 million net loss as infrastructure investment spending climbs.
A $3 billion financing package arranged through Morgan Stanley — with Google backstopping the debt — is funding the data center expansion strategy announced last September.
WULF shares rose as much as 13.6% in early New York trading Tuesday before settling to an 11% gain, reaching nearly $26 per share, their highest level in roughly three weeks. The stock has more than doubled since January 1, 2026. Shares of the CoinShares Bitcoin Mining ETF (WGMI) — which holds TeraWulf as its third-largest position at 10.86% — rose 4.5%.
TeraWulf joins a growing field of Bitcoin miners, including Hut 8, HIVE Digital, MARA Holdings, and IREN, pivoting toward AI and HPC infrastructure as Bitcoin mining margins face pressure.
The Muskie campus is expected to generate construction jobs, long-term skilled employment, and tax revenue for northeastern Kentucky, with support from the Governor’s office and local economic development authorities.
