The PSC has approved a power agreement for the TeraWulf data campus.

The Kentucky Public Service Commission has approved the Retail Electric Service Agreement for TeraWulf’s Justified Data Campus in Hancock County. The agreement authorizes up to 482 megawatts of electric service for the facility. Based on average U.S. household electricity consumption data from the U.S. Energy Information Administration for 2022, this capacity is roughly equivalent to the annual electricity use of 350,000 to 400,000 homes.

Residents of Lewisport voiced opposition to the data center during a public comment session at the end of July. The hearing centered on the retail electric service agreement, which would permit TeraWulf, through its subsidiary Justified DataPower, to purchase power from Big Rivers Electric Corp. and Kenergy for a planned facility on the former Century Aluminum site. During the session, residents raised concerns regarding potential increases in electric rates, noise pollution, environmental impacts, and what they characterized as limited local benefits.

On Aug. 21, the commission issued its ruling, stating, “After consideration of the entire record, the Commission finds that the proposed RESA contains adequate protections for existing customers, appropriately allocates financial and operational risks, establishes rates that are fair, just and reasonable, and provides for adequate and reliable service.” Under the terms of the agreement, TeraWulf assumes responsibility for all market costs, power delivery, customer service, certain expenditures, and large credit responsibilities. The contract also incorporates negotiated demand surcharges and client fees, resulting in increased contributions to both Big Rivers and Kenergy. Specifically, TeraWulf will pay its own market and delivery costs, meaning the company will directly bear the expense of the electricity it consumes.

Paul Prager, chief executive officer of TeraWulf, said, “At Justified, we’re taking a former industrial site with existing transmission infrastructure and putting it back to productive use at scale. We’re paying the costs associated with our load, protecting existing ratepayers, and making a significant long-term investment in Kentucky. We believe that’s the right model for responsible data center development, and the Commission’s decision is an important validation of that approach.” The Justified Data Campus is being constructed on the grounds of the former Century Aluminum plant, which retains approximately 482 megawatts of existing transmission capacity originally built for the smelter.

During the public comment session, PSC staff and commissioners clarified that the agency’s mandate was strictly limited to evaluating whether the proposed agreement would deliver fair, just, and reasonable rates and service. They emphasized that the commission holds no jurisdiction over water usage, noise levels, site selection, or the broader merits of the data center project itself. Nevertheless, the PSC noted that “the proposed reuse of an existing industrial site, anticipated capital investment, employment and additional tax base provide further support for the public-interest benefits asserted in the record.” With the approval secured, Big Rivers Electric Corp. and Kenergy may now implement the RESA according to its stipulated terms.