TeraWulf doubles power agreement at Muskie data center to 1 GW and advances second phase completion to 2029.
TeraWulf Inc. (Nasdaq: WULF) has amended its power agreements with Kentucky Power to double contracted capacity at its Muskie Data Campus in eastern Kentucky from 500 megawatts to 1 gigawatt. The company also accelerated delivery of the second 500 MW phase from 2030 to 2029. TeraWulf disclosed the development in a Form 8-K filed October 5, 2026, and an accompanying press release.
The amended and restated transmission infrastructure and energy service agreements were executed on October 1, 2026, by TeraWulf's wholly-owned subsidiary, DB Long Hunts Data LLC, and Kentucky Power Company, an American Electric Power subsidiary. The initial 500 MW phase remains targeted to begin ramping in 2028.
Doubling contracted power and accelerating the second phase by one year expands TeraWulf's high-performance computing and AI data center development pipeline, potentially supporting earlier customer deployments and revenue-generating capacity. TeraWulf acquired Muskie in May 2026 for phased development as an AI and HPC campus. Kentucky Power is developing a 765-kV to 345-kV substation connected to the regional transmission network to serve the site.
Management tied the expansion directly to customer demand. "Customer interest in Muskie has been tremendous, and power availability is central to those conversations," said Paul Prager, Chairman and Chief Executive Officer. He added that securing the next 500 MW and moving its delivery into 2029 provides "greater flexibility to meet prospective customers' deployment needs." TeraWulf continues to evaluate the campus's potential to support up to 2 GW over time, subject to additional utility planning, infrastructure and agreements.
In connection with its data center campus development, TeraWulf intends to increase its existing senior secured revolving credit facility and is seeking to raise additional senior secured debt to support letter of credit needs tied to long-term power development partnerships with utilities. The revolver upsize is subject to customary closing conditions.
Delivery of the second 500 MW phase is subject to Kentucky Public Service Commission approval and Kentucky Power's construction schedule. Development will proceed consistent with Governor Beshear's Executive Order on Data Center Development (2026-494). TeraWulf's forward-looking disclosures flag risks including its ability to attract additional customers, complete campuses on time and within cost estimates, obtain adequate financing on acceptable terms, and secure adequate power and electrical infrastructure equipment.
As precedent, TeraWulf noted that in August the Kentucky Public Service Commission approved the separate electric service agreement for its Justified Data Campus in Hawesville, finding that its terms adequately protected existing customers and appropriately allocated costs and risks.