TeraWulf acquires 1 GW hyperscale data site in eastern Kentucky

TeraWulf Inc. announced the purchase of a hyperscale data center site in eastern Kentucky that will eventually support more than 1 gigawatt of AI and high‑performance computing capacity, with the first 500 megawatts slated for rollout in the second half of 2028 [1].

The 1,000‑acre EastPark Industrial Park parcel, of which TeraWulf controls roughly 285 acres, will be developed as the “Muskie Data Campus.” Kentucky Power, an AEP subsidiary, is building a 345‑kilovolt substation that ties into an existing 765‑kilovolt transmission line to deliver utility‑scale, redundant power to the campus [2]. The company says the site is “shovel‑ready,” with permitting underway and zoning already in place, positioning it as a rare, fully‑planned location for large‑scale AI compute [1][2].

TeraWulf frames power and transmission infrastructure as the primary bottleneck for future AI projects, arguing that its control of both land and grid connections gives it a competitive edge [1][2]. The acquisition follows the company’s earlier 480‑megawatt Justified Data campus in Hancock County, marking its second major Kentucky venture [1]. A $3 billion financing package arranged through Morgan Stanley, with Google backing the debt, underwrites the broader expansion strategy announced last September [1].

The move comes as TeraWulf’s AI‑related revenue surged 117 percent in the latest quarter, overtaking Bitcoin mining income for the first time, even as the firm posted a $427 million net loss due to heavy infrastructure spending [1]. Shares jumped as much as 13.6 percent in early New York trading, reaching near‑$26 and more than doubling since the start of the year [1]. The project is also being touted for its local economic impact: officials from Greenup and Boyd counties, along with state agencies, highlighted expected construction jobs, long‑term skilled employment, and incremental tax revenue [2].

If the Muskie campus reaches its 1 GW target by 2030, it will consume enough electricity to power roughly 750,000 homes, adding a significant load to Kentucky’s grid and joining a broader wave of hyperscale data center proposals that could total several gigawatts statewide [3]. The real question now is whether Kentucky’s utilities and regulators can accommodate this surge without raising residential electricity costs or triggering environmental concerns, a debate already playing out across the state’s emerging data‑center pipeline.