Terawulf buys Muskie campus, targets 1GW AI in Kentucky

Terawulf Inc. has bought the Muskie Data Campus in eastern Kentucky from Industrial Equity Partners and plans to develop more than 1 gigawatt of artificial intelligence and high-performance computing capacity there by 2030. The site is inside the 1,000-acre Eastpark Industrial Park and includes about 285 acres of owned and controlled land.

The company expects the first 500 megawatts to be operational in the second half of 2028 and the remaining 500 megawatts by the second half of 2030. Terawulf said the campus will require roughly the same amount of power as that used by about 750,000 homes.

The expansion is supported by a $3 billion financing package arranged through Morgan Stanley, with Google committed to backstop the debt. Terawulf said the backing provides capital certainty for its planned buildout of large, power-intensive data centers used for AI and other compute-heavy workloads.

Terawulf is repositioning from a bitcoin miner to a builder of power-backed digital infrastructure. The company already operates the 480-megawatt Justified Data campus in Hancock County, Kentucky, and its Lake Mariner facility in western New York has helped drive growth in AI compute revenue.

The company reported a 117% increase in high-performance computing revenue in the most recent quarter, and AI compute revenue exceeded bitcoin mining revenue for the first time in the first quarter of 2026. Terawulf recorded a $427 million net loss for the period, driven by higher capital spending on infrastructure expansion.

Paul Prager, chairman and chief executive, described the current market constraint as one of power availability, transmission access and execution certainty, and said Muskie offers scalable power and strong transmission access that support rapid development.

Investors reacted to the announcement: Terawulf shares rose as much as 13.6% to trade above $26, their strongest level in about three weeks. The stock has more than doubled since Jan. 1, 2026.

Other former bitcoin miners such as Hut 8, HIVE Digital, MARA Holdings and IREN have also announced plans to add AI and high-performance computing capacity. For companies building large data centers, securing long-term power contracts, transmission access and on-time delivery are key operational considerations.

The Muskie purchase adds a second major Kentucky campus to Terawulf’s portfolio. The company said the site’s acreage and grid connections position it to serve demand for dense compute deployments.