TeraWulf Inc. has acquired a large-scale data center development site in eastern Kentucky, a move that deepens its push into high-performance computing and artificial intelligence infrastructure. The company disclosed the deal on May 26 through a Globe Newswire release.
The site, known as the Muskie Data Campus, sits within the EastPark Industrial Park and includes about 285 acres of controlled land, with options for expansion. TeraWulf expects the campus to support more than 1 gigawatt of capacity over time. The company plans to deliver an initial 500 megawatts starting in the second half of 2028, with another 500 megawatts targeted for the second half of 2030.
The acquisition adds to TeraWulf’s portfolio of energy-focused digital infrastructure sites. The company positions these assets as “shovel-ready” locations with access to long-term power and transmission networks.
BIG infrastructure expansion for $WULF 🐺
— TeraWulf (@TeraWulfInc) May 26, 2026
TeraWulf just acquired the 1+ GW Eastern Kentucky HPC Campus, “Muskie Data” — further expanding its growing AI & HPC infrastructure platform.
Here’s what you need to know…
Power access shapes development strategy
TeraWulf has emphasized power availability as the central constraint in AI infrastructure. Chief executive Paul Prager addressed that point directly in the company’s statement.
“This acquisition further reinforces the strategy we discussed on our first quarter earnings call: securing and developing large-scale, power-advantaged sites capable of supporting the next generation of HPC workloads,” Prager said.
He added,
“As we said then, the defining constraint in this market is no longer computing hardware — it is power, transmission infrastructure, and execution certainty.”
The Muskie site includes a major grid connection plan. Kentucky Power, part of American Electric Power, is constructing a 345 kV substation that links to an existing 765 kV transmission network. The companies executed transmission and energy service agreements at closing, which TeraWulf described as a clear pathway to long-term power delivery.
New site is ~300 miles from Lexington, Cincinnati, Columbus, Lousville, Pittsburgh, Cleveland, Nashville.
— matthew sigel, recovering CFA (@matthew_sigel) May 26, 2026
Even only 15% probability-weighted, we estimate the site is worth $1.3B+ in equity value or $3/share. Fully energized, $7B+.
WULF trading up $2.60 or +11% https://t.co/YxidoAYhDs
The site already holds zoning approval for data center use. Permitting has started, and the company expects a relatively direct path toward construction.
Market reaction lifts shares
Investors responded quickly to the announcement. Shares of TeraWulf rose as much as 13.6% during Tuesday trading, with the stock approaching $26 before settling near $25, according to Google Finance data. The rally added more than $1.5 billion to the company’s market value.
The move reflects investor focus on AI infrastructure as a growth area. TeraWulf has shifted its business model in recent quarters, with high-performance computing revenue surpassing bitcoin mining income for the first time in early 2026.
Transition from mining to AI infrastructure
The Kentucky expansion comes as TeraWulf accelerates its transition away from reliance on bitcoin mining. The company reported a 117% increase in HPC-related revenue in its most recent quarter, driven largely by operations at its Lake Mariner facility in New York.
The transition has also been a pressure on financial results. TeraWulf reported $34 million in revenue for the quarter while posting a net loss of $427 million, up from $61.4 million a year earlier. The company attributed the widening loss to investment in AI and HPC infrastructure.
The broader mining sector has faced tighter margins after the latest bitcoin halving reduced block rewards. Several companies in the sector have moved toward AI and compute services as an alternative revenue stream. TeraWulf’s latest acquisition signals a deeper commitment to that shift.
Infrastructure scale and regional impact
The Muskie Data Campus represents TeraWulf’s second major project in Kentucky, alongside its 480 MW Justified Data campus in Hancock County. The company has identified the state as a favorable environment for large-scale infrastructure due to its energy resources and regulatory conditions.
Industrial Equity Partners, the seller of the Muskie site, described the project as a long-term opportunity for regional development. Jake Bronstein and Michael MacDougall said,
“We have long believed the Muskie Data Campus represented a compelling opportunity for large-scale digital infrastructure development in Eastern Kentucky. We believe TeraWulf brings the infrastructure expertise, power strategy, and execution capabilities needed to realize the project’s full potential.”
Local economic development groups have also highlighted the project’s potential impact. The company expects the campus to generate construction activity, skilled jobs, and tax revenue over time. TeraWulf has stated that it will work with educational institutions to support workforce training tied to the project.
Execution challenges remain
Despite the scale of the announcement, the timeline extends several years into the future. Initial capacity will not come online until 2028. Full buildout could stretch into the next decade.
The company must also manage the financial demands of large infrastructure projects. Its recent earnings illustrate the cost of expansion. Capital requirements for data center construction, grid integration, and equipment remain high.
Prager addressed the company’s approach to growth in the statement.
“This project also reflects an important core strategy at TeraWulf: disciplined growth. We continue to focus on sites with durable power control, scalable expansion potential, strong utility relationships, and clear pathways to commercialization.”
Outlook for AI-focused infrastructure
TeraWulf’s strategy centers on energy control as a competitive advantage. The company describes itself as a “power infrastructure company that builds digital infrastructure.” That approach shapes site selection and development planning.
The Muskie acquisition strengthens that model. It adds a large-scale location with grid access and expansion capacity, while reinforcing the company’s presence in a region that continues to attract data center investment.
The coming years will test execution across financing, construction, and customer demand. For now, the announcement positions TeraWulf among companies that seek to align energy infrastructure with AI compute demand.
Jordan V.
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