Key Takeaways:
TeraWulf Inc. shares surged as much as 20 percent Monday after the data-center operator secured a 20-year lease with artificial intelligence company Anthropic for a purpose-built AI infrastructure campus in Hawesville, Kentucky, expected to generate about $19 billion in contracted revenue.
"This lease confirms our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies," Paul Prager, chairman and chief executive officer of TeraWulf, said in a statement. He added that the deal is supported by an investment-grade credit.
The campus will accommodate approximately 401 megawatts of critical IT load, developed in multiple phases. Initial capacity is expected to enter service during the second half of 2027, with the full campus ramping to completion by early 2028. For context, 401 MW is enough to power roughly 330,000 average US homes, underscoring the scale of energy infrastructure required for AI workloads.
Separately, TeraWulf entered a definitive agreement to sell its 50.1 percent ownership interest in the Abernathy Joint Venture to an investor group led by Fluidstack. The transaction monetizes TeraWulf's roughly $450 million investment at a premium to invested capital. The Abernathy JV, established in 2025, was developing a 168 MW critical IT load AI data center campus in Abernathy, Texas. Fluidstack will continue leading that project after closing.
The dual announcements signal that demand for AI data center capacity remains intense, even as some hyperscalers signal a more measured pace of capital spending. Anthropic, the developer of the Claude family of large language models, competes directly with OpenAI and Google in the race to deploy increasingly compute-intensive AI systems. The 20-year lease term — unusually long for data center agreements — reflects Anthropic's expectation that its infrastructure needs will persist across multiple model generations.
TeraWulf shares closed at their highest level in months, giving the company a market valuation that now reflects the long-term contracted revenue stream. The stock had gained roughly 40 percent year-to-date before Monday's move, according to exchange data. The company's pivot from bitcoin mining to AI infrastructure has been a key driver of investor interest, with the Anthropic lease representing its largest single customer commitment to date.
This article is for informational purposes only and does not constitute investment advice.
