TeraWulf acquires Kentucky site to expand AI, HPC data center capacity

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TeraWulf Kentucky data campus

Highlights

TeraWulf acquired the Muskie Data Campus, a 285-acre site in EastPark Industrial Park, with plans for a 1+ GW AI and HPC data center supported by a new 345 kV substation.
TeraWulf's HPC business generated $21 million out of $34 million total revenue in Q1 2026, surpassing its bitcoin mining segment for the first time.
Shares of WULF rose over 12% after the acquisition announcement, reflecting investor optimism about the company's AI and HPC data center expansion.

Kentucky campus adds large-scale power capacity

As reported by The Block, TeraWulf has acquired the Muskie Data Campus from Industrial Equity Partners on undisclosed terms. The site sits within the 1,000-acre EastPark Industrial Park and includes about 285 acres available for development.

According to the company's announcement, Kentucky Power is building a 345 kV substation connected to the existing 765 kV transmission network to support the full 1+ GW campus. Energy service agreements were executed at the same time as the acquisition, and Muskie becomes TeraWulf's second major campus in Kentucky alongside its 480 MW site in Hancock County.

TeraWulf CEO Paul Prager said the company sees itself as a power infrastructure operator that builds digital infrastructure on top of that base. He said the Muskie project reflects TeraWulf's ability to identify, secure and develop sites tied to complex energy infrastructure assets.

HPC growth reshapes TeraWulf's business mix

TeraWulf's expansion comes as former bitcoin mining companies continue moving into AI and HPC services, especially through data center development for compute-intensive workloads. In the first quarter of 2026, the company's HPC business generated about $21 million of its $34 million in quarterly revenue, overtaking its bitcoin mining segment for the first time.

The company already operates campuses in New York, Texas and Maryland, and it has been converting some bitcoin-focused facilities to support HPC workloads. Shares of WULF rose more than 12% on the news, according to The Block's stock page.

The project also arrives as data center development faces growing scrutiny in the U.S. Critics argue that new facilities can raise local electricity prices and create environmental pressures, while supporters say they bring jobs and tax revenue.

Our earlier article on I Squared Capital’s $225 million purchase of Cogent Fiber’s data center portfolio explained how investors are building platforms positioned for AI inference demand. We noted the deal spans 10 facilities across nine U.S. markets with about 53 MW of capacity, alongside plans to invest another $1 billion in upgrades, expansions, and further acquisitions as power and supply constraints reshape the sector.

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