Kentucky Power expands its power supply contract with TeraWulf's data center facility.

Kentucky Power has reached an amended agreement with TeraWulf to double its contracted electric demand at TeraWulf's Muskie Data Center campus in Grayson from 500 megawatts to 1 gigawatt, subject to approval by the Kentucky Public Service Commission.

If approved, the agreement will provide $100 million in winter bill credits beginning in 2029, funded by TeraWulf for Kentucky Power's residential customers over the first ten years of the contract. For a typical residential customer, these credits could amount to approximately $25 per month during the winter heating season.

The expanded agreement also accelerates the planned delivery of the second 500-megawatt phase from 2030 to 2029. The campus's planned expansion is expected to generate new economic activity through infrastructure investment, construction activity, permanent jobs, and new tax revenue for local communities.

In addition to paying all applicable service charges, TeraWulf has agreed to cover the estimated financing costs associated with construction of Kentucky Power's planned 760-megawatt combined-cycle generation facility at Big Sandy. This commitment ensures that costs associated with the increased demand are not shifted to existing customers.

Cindy Wiseman, president and chief operating officer of Kentucky Power, said: "At Kentucky Power, we are working to bring new businesses and economic opportunity to eastern Kentucky, creating meaningful benefits for the customers and communities we serve. By providing a decade's worth of direct residential bill credits, supporting critical energy infrastructure investments and helping ensure the costs associated with new demand are paid by the customers driving that growth, this agreement demonstrates how economic development can create lasting value for our customers and communities."

Paul Prager, chairman and CEO of TeraWulf, added: "This agreement shows how large-scale investment can support both economic growth and meaningful benefits for existing utility customers. Kentucky Power has been a strong partner in advancing Muskie's development. Expanding contracted power to 1 gigawatt and bringing the second phase forward to 2029 positions us to meet strong customer demand and bring lasting investment to eastern Kentucky."

Kentucky Power plans to file the amended contract and seek related regulatory approvals later this year.

Kentucky Power provides electric service to approximately 163,000 customers across 20 eastern Kentucky counties: Boyd, Breathitt, Carter, Clay, Elliott, Floyd, Greenup, Johnson, Knott, Lawrence, Leslie, Letcher, Lewis, Magoffin, Martin, Morgan, Owsley, Perry, Pike, and Rowan. Kentucky Power is a subsidiary of American Electric Power.