Anthropic leases TeraWulf data center in Kentucky
Anthropic has formalized a strategic partnership with TeraWulf by signing a two-decade lease for a new 400-megawatt artificial intelligence data center located in Hawesville, Kentucky, approximately one hour southwest of Louisville. The agreement, announced Monday, marks a significant expansion of Anthropic infrastructure capacity while providing TeraWulf with a substantial long-term revenue stream projected to reach 19 billion dollars over the initial contract term. First power delivery is scheduled for the second half of 2027. Following the announcement, TeraWulf equity surged more than 16 percent in premarket trading, contributing to a broader year-to-date stock appreciation exceeding 80 percent. The transaction underscores the successful operational pivot of TeraWulf, a former cryptocurrency mining firm transitioning into specialized AI data center infrastructure. Chief Executive Paul Prager emphasized that the Anthropic agreement validates the company strategy and secures a durable financial foundation through one of the industry leading AI developers. In parallel with the Kentucky development, TeraWulf has optimized its portfolio by divesting a 50 percent stake in a 168-megawatt facility in Abernathy, Texas. The transaction was finalized with an investor consortium led by Fluidstack, a move designed to streamline capital allocation while maintaining operational focus on high-demand AI infrastructure projects. The Kentucky lease, combined with strategic asset realignment, positions TeraWulf to capitalize on the accelerating enterprise demand for specialized compute resources, reinforcing broader market confidence in dedicated AI data center operators.
