TeraWulf Closes Kentucky Data Center Acquisition, Targets 1.5 GW
In brief
- TeraWulf closed acquisition of Muskie Data Campus, a 285-acre Kentucky site, on May 22.
- Muskie will develop into hyperscale data center with 1+ gigawatt capacity across two phases through 2030.
- Combined with Hawesville site, TeraWulf's Kentucky portfolio could exceed 1.5 GW by 2030.
- Strategic pivot from Bitcoin mining toward high-performance computing and AI infrastructure.
- Stock climbed 11–13% following the May 26 announcement.
The Muskie Acquisition
TeraWulf closed the transaction with Industrial Equity Partners on May 22, acquiring a greenfield site that positions the company to serve surging demand for AI and HPC services. The company plans to develop capacity in two phases: 500 MW targeted for the second half of 2028, and another 500 MW expected by the end of 2030.
Powering a hyperscale facility requires serious infrastructure. Kentucky Power, a subsidiary of American Electric Power, is building a dedicated 345 kV substation that connects to the existing 765 kV transmission network, ensuring the Muskie campus has the electrical backbone needed to scale.
Strategic Pivot and Market Response
TeraWulf's strategic direction has shifted decisively toward high-performance computing and AI infrastructure. CEO Paul Prager framed the Muskie acquisition as part of the company's broader strategy to build "power-advantaged" sites designed to meet surging demand for AI and HPC services.
This isn't the company's first Kentucky move. In February 2026, TeraWulf acquired the Hawesville site, now branded the Justified Data Campus, which is projected to deliver approximately 480 MW of capacity. Combined with the Muskie campus, TeraWulf's Kentucky portfolio could eventually exceed 1.5 GW.
TeraWulf's stock climbed between 11% and 13% following the announcement on May 26, signaling investor confidence in the expansion. The company maintains a mining segment alongside its HPC ambitions, giving investors dual exposure to Bitcoin price movements and AI infrastructure demand.
