TeraWulf has taken a significant step in the artificial intelligence sector by acquiring a large development site in eastern Kentucky, designed to support over 1 gigawatt of data center capacity dedicated to AI and high-performance computing. The landmark deal, which is also aimed at addressing the growing demand for power in the AI landscape, positions TeraWulf to play a pivotal role in this rapidly evolving field.
The newly dubbed “Muskie Data Campus,” acquired from Industrial Equity Partners, is situated within the expansive 1,000-acre EastPark Industrial Park. TeraWulf has obtained approximately 285 acres of controlled land, with options for additional adjacent acreage to facilitate future expansion. The site has already been approved for its intended purpose, streamlining the development process. Notably, 1 gigawatt of capacity can effectively power around 750,000 homes, illustrating the scale of TeraWulf’s ambitions.
Following the announcement, TeraWulf’s stock saw a noticeable uptick, rising approximately 9% to $24.78, with peaks reaching $25.92, marking the highest price for the shares in the past year. Since the beginning of the year, TeraWulf’s stock price has more than doubled, reflecting investor optimism in the firm’s strategy.
This ambitious acquisition aligns with a broader industry trend where tech and infrastructure companies are vying for access to substantial land with reliable power sources, which has become a critical constraint in the burgeoning AI infrastructure sector. TeraWulf Chairman and CEO Paul Prager emphasized, “The defining constraint in this market is no longer computing hardware—it is power, transmission infrastructure, and execution certainty.”
To support this massive undertaking, Kentucky Power is in the process of constructing a 345-kilovolt substation linked to an existing 765 kV transmission network, ensuring adequate power supply for the data center. The first 500 megawatts of capacity from the Muskie campus is slated to become operational in the latter half of 2028, with a second phase of 500 megawatts expected in 2030.
This latest site will complement TeraWulf’s existing 480-megawatt Justified Data campus in Hancock County, marking its second major digital infrastructure initiative in Kentucky. The firm is joining a number of Bitcoin mining companies—including IREN, MARA Holdings, and Hive Digital Technologies—that are leveraging existing infrastructure to meet the surging need for AI-related computing power. Notably, TeraWulf has reported its AI compute revenue has now surpassed its Bitcoin mining revenue for the first time, although it also noted a net loss of $427 million for the first quarter.
As the race to develop AI capabilities continues to accelerate, TeraWulf’s strategic moves highlight the shifting dynamics in industrial land use and the increasing importance of energy resources in this competitive landscape.
