TeraWulf doubles Muskie Data Campus power to 1 GW, eyes 2 GW
TeraWulf (Nasdaq: WULF) has executed an amended electric service agreement with Kentucky Power, an AEP subsidiary, increasing contracted power capacity at its Muskie Data Campus in eastern Kentucky from 500 MW to 1 GW. The company said the amendment also advances the planned delivery of Muskie's second 500 MW phase by one year, from 2030 to 2029, subject to approval from the Kentucky Public Service Commission and Kentucky Power's construction schedule.
The first 500 MW phase remains on track to begin ramping in 2028. TeraWulf acquired the Muskie site in May 2026, positioning it as a large-scale campus for AI and high-performance computing workloads. The company is also evaluating a longer-term pathway to 2 GW, though that would require further utility planning and additional agreements.
Infrastructure and regulatory path
Kentucky Power is developing a 765-kV/345-kV substation connected to the regional transmission network to serve Muskie, which underscores the scale of grid investment required to activate sites of this size. The development will proceed in line with Governor Andy Beshear's Executive Order on Data Centre Development (2026-494), a Kentucky state directive aimed at coordinating large-scale data centre growth with utility infrastructure planning.
TeraWulf said the agreement structure follows its established approach in Kentucky: coordinating with the utility on necessary infrastructure, providing financial protections for utility investment, and ensuring existing ratepayers are not adversely affected. That approach received regulatory endorsement in August, when the Kentucky Public Service Commission approved a separate electric service agreement for TeraWulf's Justified Data Campus in Hawesville, finding its terms appropriately allocated costs and risks.
Paul Prager, chairman and chief executive of TeraWulf, said customer demand for the campus had been strong and that power availability was central to prospective tenant conversations. "Securing the next 500 MW and moving its planned delivery into 2029 gives us greater flexibility to meet prospective customers' deployment needs," he said.
Market context
The race to lock in large blocks of contracted power is rapidly becoming a defining constraint in the hyperscale and AI infrastructure market. Data centre developers across the US are competing for grid capacity in transmission-constrained regions, and multi-gigawatt site announcements have become a benchmark for signalling seriousness to enterprise and hyperscaler customers. Utility substation lead times and state regulatory approvals are now among the longest items on the critical path for campus delivery, often running three to five years.
TeraWulf also operates the Lake Mariner Data Campus in New York, where it is repurposing bitcoin-mining infrastructure to support contracted HPC development. That pivot reflects a broader industry trend of former crypto miners repositioning stranded power assets for AI workloads, where lease economics and demand visibility are substantially more attractive.
The Kentucky PSC's prior approval of the Justified Campus agreement gives TeraWulf a regulatory precedent to point to as the Muskie amendment works through the same commission. Analysts tracking the company will focus on whether Muskie can book a named anchor tenant ahead of the 2028 ramp, and whether the 2 GW aspiration triggers further substation investment commitments from Kentucky Power.