TeraWulf Unveils 1 GW Kentucky AI Data Center Expansion, Shares Surge 13%
TeraWulf, originally focused on bitcoin mining, has increasingly leveraged its existing power procurement, transmission and data center operating capabilities to serve AI and high-performance computing (HPC) demand. The Muskie Data Campus is its second large-scale site in Kentucky, underscoring how competition for AI computing capacity has expanded beyond chips to sites with reliable, long-term power access.
TeraWulf said on May 26, 2026, that it had acquired the Muskie site in eastern Kentucky from Industrial Equity Partners. The transaction took effect on May 22, and its value was not disclosed. The roughly 285-acre site is expected to deliver an initial 500 MW in the second half of 2028 and another 500 MW in the second half of 2030. TeraWulf shares rose 13.06% intraday to $25.80.
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The history behind this eventTeraWulf Doubles First-Quarter AI Revenue, Posts $427 Million Net Loss on Infrastructure Transition Costs
TeraWulf, once primarily a Bitcoin miner, has increasingly redirected its energy and data center resources toward leasing capacity for AI high-performance computing, or HPC. The shift reflects miners’ efforts to enter the fast-growing AI infrastructure market as mining revenue comes under pressure. It has also put capital spending and profitability in sharper focus for investors.
TeraWulf recorded $21 million in HPC leasing revenue in the first quarter of 2026, up 117% from a year earlier and accounting for about 60% of total revenue. However, declining Bitcoin mining revenue and the construction costs and investment required for its AI infrastructure transition widened the company’s quarterly net loss to $427 million.
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