TeraWulf Inc. (Nasdaq: WULF) announced Tuesday the acquisition of a hyperscale data center in eastern Kentucky, a move that sent shares up 14% at times today as investors reacted to the company’s depth in artificial intelligence and high-performance computing infrastructure.
The new “Muskie Data Campus,” purchased from Industrial Equity Partners, is located within the 1,000-acre EastPark Industrial Park in northeastern Kentucky and includes approximately 285 acres of owned and managed land.
The site is expected to support more than one gigawatt of AI and HPC capacity – enough to power around 750,000 homes. The first 500 megawatts are targeted to come online in the second half of 2028, with another 500 megawatts set for delivery in the second half of 2030.
Kentucky Power, an AEP company, is building a 345 kilovolt substation connected to the existing 765 kV transmission network to serve the campus. Transmission infrastructure and energy service agreements were made at the shutdown, establishing what TeraWulf described as a clear path to long-term, large-scale energy delivery. The site is designed for its intended use, and permission is in progress.
“The defining factor in this market is no longer hardware – power, transmission infrastructure, and performance assurance,” said Paul Prager, Chairman and CEO of TeraWulf. “Muskie combines unbridled energy, robust transmission infrastructure, development readiness, and strategic regional positioning in a way that is difficult to replicate.”
The acquisition marks TeraWulf’s second large digital infrastructure campus in Kentucky, joining its 480-megawatt Justified Data campus in Hancock County. The company bills itself as a “power infrastructure company that builds digital infrastructure” — a distinction that Prager said is down to TeraWulf’s ability to secure sites like Muskie ahead of competitors.
TeraWulf’s AI computer beats Bitcoin mining
The deal comes as TeraWulf’s HPC-related revenue rose 117% in the most recent quarter, driven by its Western New York Lake Mariner location, which is one of the largest HPC campuses in North America. AI accounts for Bitcoin mining revenue for the first time in Q1, although the company posted a net loss of $427 million as infrastructure spending on investments increased.
A $3 billion financing package arranged through Morgan Stanley – Google is backing the debt – is financing the data center expansion strategy announced last September.
Shares of WULF rose as much as 13.6% in early New York trading on Tuesday before paring an 11% gain, to around $26 per share, their highest level in nearly three weeks. The stock has more than doubled since January 1, 2026. Shares of CoinShares Bitcoin Mining ETF (WGMI) — which holds TeraWulf as its third-largest position at 10.86% — rose 4.5%.
TeraWulf joins a growing field of Bitcoin miners, including Hut 8, HIVE Digital, MARA Holdings, and IREN, looking to AI and HPC infrastructure as Bitcoin mining frontiers come under pressure.
The Muskie campus is expected to generate construction jobs, long-term skilled employment, and tax revenue in northeastern Kentucky, with the support of the Governor’s office and local economic development authorities.
