TeraWulf has signed a 20-year agreement with AI company Anthropic to develop a 401 MW AI campus in Kentucky. At the same time, the company is selling its majority stake in another AI data center project to Fluidstack.
The two transactions represent billions of dollars in future revenue and freed-up investment capital. The agreement with Anthropic concerns the new Justified Data campus in Hawesville, Kentucky. There, TeraWulf is developing a data center campus designed specifically for AI, with a critical IT capacity of approximately 401 MW. The first phase of capacity is expected to become available in the second half of 2027. The entire campus is expected to be operational by early 2028.
According to TeraWulf, the lease agreement is expected to generate approximately $19 billion in contractually guaranteed rental revenue over its initial 20-year term. The company also reports that the agreement is backed by a party with an investment-grade credit profile.
Existing energy infrastructure
The campus is being built on the site of a former aluminum smelter in Hawesville. The location already has high-capacity electrical connections and fiber-optic links. This allows the development to proceed more quickly than at a completely new site, where the construction of high-voltage connections often takes several years.
SiliconANGLE also reports that TeraWulf expects to invest between 3 and 4 billion dollars in the campus. Compared to the expected lease revenue, this highlights the significant financial impact of the agreement for the company. By way of comparison: in the past quarter, TeraWulf generated revenue of 34 million dollars.
In addition to the lease with Anthropic, TeraWulf announced the sale of its 50.1 percent stake in the Abernathy Joint Venture to a group of investors led by Fluidstack, the current partner in the project. Financial details of the transaction have not been disclosed, but TeraWulf states that the sale recoups its investment of approximately $450 million at a premium.
The Abernathy Joint Venture was established in 2025 to develop a 168 MW AI data center campus in Abernathy, Texas. Upon completion of the sale, Fluidstack will lead the project’s further development.
With this sale, TeraWulf aims to free up capital for AI infrastructure that it fully owns. In doing so, the company is explicitly choosing to focus on projects where it remains both the owner and operator and maintains the customer relationship itself.
The two transactions may be more closely linked than they appear at first glance. Anthropic and Fluidstack had already announced a partnership late last year to develop multiple AI data centers in the United States. The first locations were to be built in Texas and New York. Although TeraWulf has not commented on this, SiliconANGLE therefore does not rule out the possibility that the campus in Abernathy will eventually host AI workloads from Anthropic as well.
Strategic direction
According to Chairman and CEO Paul Prager, the agreement with Anthropic reaffirms the company’s strategy of securing long-term contracts for large-scale AI infrastructure. He notes that TeraWulf had already indicated, upon acquiring the Justified Data campus earlier this year, that it expected a major client around the end of the second quarter.
According to the company, the combination of both transactions should result in more predictable revenue, a stronger balance sheet, and greater investment capacity for future AI data centers. Furthermore, the sale of its stake in Abernathy removes the joint venture from the financial statements, which TeraWulf says simplifies reporting.