Terawulf Inc. (NASDAQ:WULF) saw its stock surge 20% after announcing it had secured two 10-year high-performance computing colocation contracts with AI cloud platform Fluidstack, totaling approximately $3.7 billion in committed revenue.
Under the agreements, Terawulf will provide over 200 MW of critical IT capacity at its Lake Mariner data center campus in Western New York. The facility is specifically designed for liquid-cooled AI workloads, accommodating the scale, density, and resiliency needed for next-generation computing.
The contracts include two five-year extension options, which, if exercised, could increase total revenue to roughly $8.7 billion. Google will guarantee $1.8 billion of Fluidstack’s lease obligations to support project-related debt financing and will receive warrants for about 41 million shares of Terawulf common stock, representing nearly 8% pro forma equity ownership.
Phase one, which will deliver roughly 40 MW of critical IT load, is scheduled to be operational in the first half of 2026, with the full 200+ MW expected by the end of 2026.
“This is a defining moment for TeraWulf,” said Paul Prager, Chief Executive Officer of Terawulf. “We are proud to unite world-class capital and compute partners to deliver the next generation of AI infrastructure, powered by low-cost, predominantly zero-carbon energy.”
The company anticipates site Net Operating Income margins of about 85%, implying annual NOI of roughly $315 million. Total project costs are estimated between $8 million and $10 million per MW of critical IT load.
Terawulf plans to tap capital markets to fund a portion of the project, which also includes a 30-day exclusivity period to explore potential additional growth at the Lake Mariner campus.
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