TeraWulf amends its Kentucky Power agreement, raising Muskie data center campus capacity to 1 GW of AI compute.

TeraWulf Inc. has announced an increase in contracted power capacity at its Muskie Data Campus in Eastern Kentucky following an amended electric service agreement with Kentucky Power, an American Electric Power company subsidiary. The expansion will raise power capacity from 500 MW to 1 GW and accelerate delivery of the second 500 MW phase from 2030 to 2029, subject to Kentucky Public Service Commission approval and Kentucky Power's construction schedule. The first 500 MW phase is set to begin ramping in 2028.

"Customer interest in Muskie has been tremendous, and power availability is central to those conversations," said Paul Prager, TeraWulf Chairman and Chief Executive Officer. "Securing the next 500 MW and moving its planned delivery into 2029 gives us greater flexibility to meet prospective customers' deployment needs. It also builds on the progress our teams have made with Kentucky Power since we acquired the site."

TeraWulf acquired the Muskie Data Campus from Industrial Equity Partners in May. The site, located in the EastPark Industrial Park, spans 285 acres of owned and controlled land capable of supporting hyperscale AI and high-performance computing infrastructure, with additional optional acreage adjacent to the site available for future expansion.

Kentucky Power is constructing a 345 kV substation that will connect to the existing 765 kV transmission network, providing redundant, utility-scale power infrastructure designed to support the full 1 GW campus. TeraWulf is evaluating the campus's potential to support up to 2 GW of load over time, subject to additional utility planning, infrastructure, and agreements.

The Kentucky PSC has imposed several protections for Kentucky customers, including a 20-year minimum contract term, a 90 percent minimum billing floor even if actual use is lower, an early exit fee, limits on capacity reductions, and collateral equal to 24 times the previous maximum monthly non-fuel bill.

In August, TeraWulf received approval from the Kentucky PSC for a Retail Electric Service Agreement to support 482 MW of electrical service at its Justified Data Campus in Kentucky. Based on current expected development costs of between $10 million and $12 million per MW of critical IT load, TeraWulf will invest between $4 billion and $4.5 billion in the initial data halls and site development.