TeraWulf Secures 1 GW Capacity for Kentucky Data Center Expansion
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Key Takeaways
- TeraWulf doubled its contracted power at the Muskie Data Campus to 1 GW.
- The delivery of the second 500 MW phase was accelerated from 2030 to 2029.
- The first 500 MW phase is scheduled to begin ramping up in 2028.
- The company is seeking to upsize its senior secured revolving credit facility to support growth.
- Project timelines remain subject to Kentucky Public Service Commission approval.
On October 1, 2026, TeraWulf (NASDAQ: WULF) subsidiary DB Long Hunts Data LLC finalized updated energy and transmission service contracts with Kentucky Power Company, a unit of American Electric Power. The new terms increase the total contracted power for the Muskie Data Campus in eastern Kentucky from 500 megawatts (MW) to 1 gigawatt (GW).
The timeline for the second 500 MW phase of the development has been pulled forward from 2030 to 2029. This acceleration is contingent upon construction schedules and regulatory clearance from the Kentucky Public Service Commission. Meanwhile, the initial 500 MW phase remains on track to begin scaling operations in 2028.
To facilitate the massive power requirements, Kentucky Power is working on a high-voltage substation featuring 765-kV and 345-kV connections. TeraWulf, which originally acquired the site in May 2026 for artificial intelligence and high-performance computing applications, is also exploring the possibility of eventually reaching 2 GW of total capacity at the location.
In conjunction with these operational updates, TeraWulf is adjusting its financial strategy. The firm intends to expand its existing senior secured revolving credit facility and raise more senior secured debt. These funds are intended to meet letter of credit obligations required by its utility partners for long-term power development.
