By Connor Hart
TeraWulf will partner with Anthropic to build an artificial-intelligence infrastructure campus in Kentucky that could generate $19 billion in revenue and bring 400 megawatts of computing power online by 2028.
The digital-infrastructure company said Monday the project is backed by a 20-year lease and supported by an investment-grade credit profile.
Shares of TeraWulf jumped 17%, to $24.87, in premarket trading.
TeraWulf said the campus, located at the Justified Data site in Hawesville, Ky., will accommodate about 401 megawatts of critical IT load and be developed in multiple phases, with initial capacity coming online in the second half of next year. The site is expected to ramp to full capacity by early 2028.
Chief Executive Paul Prager said the lease validates TeraWulf's strategy and establishes a long-duration revenue stream with a leading AI company.
"The lease provides approximately $19 billion of contracted lease revenue over its initial term, creates a framework for future expansion, and demonstrates the value of our ability to source power, develop infrastructure, and secure long-term customer commitments," he said.
Separately, TeraWulf said it will sell its 50.1% ownership interest in the Abernathy Joint Venture to an investor group led by Fluidstack, its joint venture partner and an AI-cloud infrastructure provider.
The sale will enable the company to realize the value created through its $450 million investment and redeploy capital into AI-infrastructure opportunities where it can capture greater long-term economic value through direct ownership and operation, TeraWulf said.
"Together, these transactions position TeraWulf for its next phase of growth," Prager said.
Write to Connor Hart at connor.hart@wsj.com