Updated
Updated · CNBC · Jul 6
TeraWulf Jumps 16% After Anthropic Signs 20-Year Kentucky Data Center Lease
Updated
Updated · CNBC · Jul 6

TeraWulf Jumps 16% After Anthropic Signs 20-Year Kentucky Data Center Lease

3 articles · Updated · CNBC · Jul 6

Summary

  • TeraWulf shares rose more than 16% in premarket trading after Anthropic agreed to a 20-year lease for the company's Kentucky data center.
  • The Hawesville site, about an hour southwest of Louisville, is planned for roughly 400 megawatts of capacity, with first power delivery expected in the second half of 2027.
  • TeraWulf said the lease should generate about $19 billion in revenue over the initial term, giving the former crypto miner a long-duration income stream tied to AI infrastructure demand.
  • The company also sold its 50% stake in a 168-megawatt data center in Abernathy, Texas, to an investor group led by Fluidstack.
  • The deal underscores TeraWulf's pivot from crypto mining to AI data centers; its stock was already up more than 80% this year.

Insights

With a $19 billion deal signed, can TeraWulf actually build the massive infrastructure Anthropic needs on time?
Is Anthropic’s infrastructure bet risky if future AI models become vastly more energy-efficient?
Can America's aging power grid support AI's energy demands without causing widespread blackouts for everyone else?