American company TeraWulf has announced a major expansion of its infrastructure by constructing a new data center in the state of Kentucky. The capacity of the facility, named Muskie Data Campus, will reach 1 GW upon completion of all project phases by 2030.
This is reported by Business • Media
Details of the Deal and Features of the Facility
The new data center will be located on a site of approximately 285 acres in the EastPark industrial park, near the cities of Ashland and Grayson. TeraWulf acquired this land from Industrial Equity Partners, although the financial terms of the deal have not been disclosed. An important advantage of the location is the presence of a substation being built under a separate contract with the local utility company Kentucky Power, which will provide stable electricity supply for the large computing needs of the future complex.
It is planned that the first phase of the center — with a capacity of 500 MW — will be operational by the second half of 2028, and the full designed capacity of Muskie Data Campus will be achieved by 2030. The purchase agreement also includes potential for further expansion of the site.
TeraWulf’s Strategy and Market Reaction
“Muskie Data Campus further expands our portfolio of multi-faceted site development projects and strengthens our ability to serve large clients in the fields of artificial intelligence and high-performance computing across various regions and energy markets,” said Paul Prager, Chairman and CEO of TeraWulf.
Like many other companies that previously focused on cryptocurrency mining, TeraWulf is pivoting to provide infrastructure for companies in artificial intelligence (AI) and high-performance computing (HPC). For example, another mining company, Riot Platforms, has also reduced its bitcoin portfolio to invest in the construction of a data center in Texas.
At the same time, the industry faces resistance from local communities concerned about noise levels and vibrations from the cooling systems of the new facilities.
Despite this, the announcement of the creation of Muskie Data Campus was positively received by the market: TeraWulf’s shares on the Nasdaq rose from $22 to $25.7.
Muskie Data Campus will be TeraWulf’s second data center in Kentucky — the company already owns the Justified Data facility with a capacity of 480 MW.