TeraWulf signs Anthropic data center lease expected to generate $19 billion
TeraWulf is expanding its push into AI infrastructure with a long-term leasing agreement tied to its Kentucky data center site. The 20-year contract with Anthropic is expected to provide recurring revenue as the company reduces its dependence on bitcoin mining.
Highlights
- TeraWulf signs a 20-year lease with Anthropic for a purpose-built AI data center in Kentucky, targeting 401 megawatts and $19 billion contracted revenue.
- Shares of TeraWulf rise more than 16% in premarket trading after the announcement, adding to an approximately 85% year-to-date advance amid its shift to AI infrastructure.
- TeraWulf sells its 50.1% stake in the Abernathy joint venture to Fluidstack's group, monetizing its roughly $450 million investment at a premium and freeing funds for AI projects.
Lease terms and project timeline
As reported by Reuters, TeraWulf says it signed a 20-year lease with Anthropic for data center infrastructure at its Justified Data site in Hawesville, Kentucky.The lease covers a purpose-built AI infrastructure campus designed to support about 401 megawatts of critical IT load. Initial capacity is expected to come online in the second half of 2027, with full capacity targeted by early 2028.
The company says the agreement is expected to generate about $19 billion in contracted revenue over the life of the deal. TeraWulf shares rise more than 16% in premarket trading after the announcement.
Shift away from bitcoin mining
The agreement gives TeraWulf a source of long-term, recurring revenue from an AI customer as it shifts its business model beyond bitcoin mining. The company said in May that AI infrastructure is increasingly set to drive its business.Separately, TeraWulf agrees to sell its 50.1% stake in the Abernathy joint venture to an investor group led by partner Fluidstack. The company says the transaction monetizes its roughly $450 million investment at a premium to invested capital and frees up funding for wholly owned AI infrastructure projects.
Before Monday's session, TeraWulf shares were already up about 85% year to date, highlighting investor interest in the company's repositioning toward AI-related operations.
In our earlier article, we covered delays to Nvidia’s next-generation Kyber rack-scale AI system, which were linked to manufacturing hurdles around the PCB midplane and changes to the Rubin Ultra roadmap. We noted that these constraints could reshape how quickly data-center AI infrastructure expands and may open room for alternative suppliers as hyperscalers seek dependable capacity.
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