TeraWulf Inc. (NASDAQ:WULF) said Tuesday that it has acquired a development site in Eastern Kentucky that the company intends to develop as the Muskie Data Campus, a hyperscale high-performance computing (HPC) facility planned to support more than 1 gigawatt of data center capacity over time. Shares of TeraWulf rose 4.7% in premarket trading following the announcement.
The site was acquired from Industrial Equity Partners and is located within the 1,000-acre EastPark Industrial Park. TeraWulf said the campus includes roughly 285 acres of land that the company either owns or controls, and that the property is already zoned for the intended data center use. Permitting activities are under way and the company said only limited site work will be required to enable data center construction.
Under the timetable disclosed by TeraWulf, delivery of the initial 500 megawatts of capacity is expected to begin ramping in the second half of 2028. An additional 500 megawatts is targeted for delivery in the second half of 2030, bringing the total planned capacity to more than 1 gigawatt over time.
Power and transmission arrangements were put in place alongside the acquisition. Kentucky Power, an AEP Company, is building a 345 kilovolt substation that will connect to the existing 765 kilovolt transmission network, providing redundant, utility-scale power infrastructure designed to support the full 1+ GW campus. TeraWulf said transmission infrastructure and energy service agreements were executed concurrently with the purchase.
"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," said Paul Prager, Chairman and Chief Executive Officer of TeraWulf.
The Muskie Data Campus will be TeraWulf's second significant digital infrastructure campus in Kentucky. The company already operates the Justified Data campus in Hancock County, which it describes as a 480 megawatt facility.
Regional economic development leaders have singled out the Muskie campus as one of the most significant economic development opportunities in northeastern Kentucky in decades, according to the company announcement.
Key commercial milestones referenced in the announcement include the executed transmission and energy service agreements and the site's zoning status. TeraWulf indicated that with permitting underway and limited preparatory site work required, the campus can move toward construction aligned with the stated phased delivery schedule.
Summary
TeraWulf has purchased a development site in Eastern Kentucky to build the Muskie Data Campus, planned to exceed 1 GW of data center capacity. Initial delivery of 500 MW is expected to ramp in H2 2028, with another 500 MW targeted for H2 2030. The acquisition included executed transmission infrastructure and energy service agreements, and the site sits inside EastPark Industrial Park on about 285 acres of owned or controlled land.
Key points
- TeraWulf acquired the Muskie Data Campus site from Industrial Equity Partners and expects the campus to support more than 1 gigawatt of capacity over time - sector impact: data center and digital infrastructure.
- Initial 500 MW delivery is scheduled to begin ramping in the second half of 2028, with a second 500 MW targeted for the second half of 2030 - sector impact: power and utility planning.
- Transmission infrastructure and energy service agreements were executed at closing; Kentucky Power is building a 345 kV substation tied to the 765 kV network to provide redundant utility-scale power - sector impact: energy and transmission.
Risks and uncertainties
- Timing risk: The announced delivery windows for the two 500 MW phases depend on the completion of permitting and construction. Delays in permitting or site work could affect the ramp schedule - sectors affected: construction, data centers.
- Operational and infrastructure execution risk: The campus relies on the completion of the 345 kV substation and associated transmission work to support the full 1+ GW capacity; coordination with the utility and grid build-out is critical - sectors affected: utilities, transmission.
- Development risk: Though the site is zoned and only limited site work is said to be required, changes in local approvals or unforeseen site conditions could alter development plans - sectors affected: real estate, industrial development.