Key Takeaways
- Terawulf bought a Kentucky AI campus targeting 1GW of HPC capacity by 2030.
- Terawulf shares jumped 13.6% as AI revenue surpassed bitcoin mining in Q1 2026.
- Morgan Stanley and Google backed Terawulf’s $3B AI infrastructure expansion plan.
Terawulf Shares Climb 13% as AI Revenue Overtakes Bitcoin Mining Income
Terawulf Inc. is moving deeper into artificial intelligence (AI) infrastructure with the purchase of a large data center development site in eastern Kentucky, underscoring how former bitcoin mining firms are chasing demand for power-hungry computing capacity.
The Nasdaq-listed company said it acquired the “Muskie Data Campus” from Industrial Equity Partners. The site sits inside the 1,000-acre Eastpark Industrial Park in northeastern Kentucky and includes about 285 acres of owned and controlled land.
Terawulf said the campus is expected to support more than 1 gigawatt of AI and high-performance computing capacity. That is roughly enough electricity to power 750,000 homes.
The company plans to bring the first 500 megawatts online in the second half of 2028. A further 500 megawatts is expected to follow by the second half of 2030.
Investors welcomed the move. Terawulf shares rose as much as 13.6% to trade above $26, their strongest level in about three weeks. The stock has more than doubled since Jan. 1, 2026.
“The defining constraint in this market is no longer computing hardware; it is power, transmission infrastructure, and execution certainty,” Chairman and CEO Paul Prager said. He added that Muskie combines scalable power, strong transmission access, and development readiness in a way that is hard to replicate.
The acquisition gives Terawulf a second major digital infrastructure campus in Kentucky. It already operates the 480-megawatt Justified Data campus in Hancock County.
Terawulf Accelerates Shift Toward High-Performance Computing
Terawulf has been repositioning itself as a power infrastructure company that builds digital infrastructure, rather than a pure bitcoin miner. That strategy is beginning to show up in its financial results.
The company’s high-performance computing revenue rose 117% in the most recent quarter, helped by its Lake Mariner facility in western New York. AI compute revenue exceeded bitcoin mining revenue for the first time in the first quarter.
The shift has not come cheaply. Terawulf reported a $427 million net loss as spending on infrastructure expansion increased. However, the company’s broader data center buildout is backed by a $3 billion financing package arranged through Morgan Stanley, with Google backstopping the debt.
Terawulf is not alone. Hut 8, HIVE Digital, MARA Holdings, and IREN are also pushing into AI and high-performance computing as bitcoin mining margins shrink. For the sector, the race is shifting from hash rate to power contracts, transmission access, and the ability to deliver large-scale data centers on time.
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