TeraWulf inked two 10-year deals with FluidStack for 200+ MW hyperscale AI hosting, boosting TeraWulf’s credit profile. The Chairman and CEO of TeraWulf, Paul Prager, said the $3.7B deals could potentially go up to $8.7B if lease extensions were exercised.
The CEO clarified that the two 10-year HPC (high-performance computing) colocation deals with Fluid Stack represented $3.7B in contracted revenue over the first decade, including two five-year extensions. The company will deliver over 200 MW of critical IT load (~250 MW gross capacity) at its Lake Mariner, Western New York data center. The facility is designed to meet density, scale, and resilience needs for TeraWulf’s next-generation compute.
Google will also back the deal with about $1.8B to support the financing of project-related debts over the next 10 years. Google will get 41M TeraWulf common shares in exchange, translating to about 8% of pro forma equity ownership.
The company also disclosed that it would approach capital markets to fund parts of the project. TeraWulf expects the first phase of roughly 40 MW of critical IT load to be online by mid-2026. The full 200+ MW should be deployed by the end of 2026.
Prager calls it a defining moment for his company
Chair and CEO, Prager, said this was a defining moment for TeraWulf. He added that the partnership aimed to deliver predominantly low-cost, zero-carbon energy-powered AI infrastructure.
Prager boasted that in addition to accelerating the company’s expansion into high-performance computing, the Lake Mariner facility was hyperscale-ready. Nazar Khan, the Chief Technology Officer at TeraWulf, chimed in, saying the partnership highlighted the readiness of the Lake Mariner facility and the capacity of the team.
Khan also claimed that Lake Mariner was purpose-built for high-demand AI workloads that fit today’s standards. The data center was connected to ultra-low-latency fiber, dual 354kV transmission lines, and had a closed-loop water-cooled system. Khan believes the partnership with FluidStack allowed his company to engineer a fully customized and scalable solution.
“Fluidstack is proud to be a trusted provider of critical compute for the world’s leading AI labs…Our partnership with TeraWulf reflects our shared commitment to delivering rapid, scalable infrastructure for the AI frontier.”
–César Maklary, Co-Founder and President of Fluidstack
Patrick Fleury, TeraWulf’s Chief Financial Officer, said that, given the company’s expected credit profile boost, TeraWulf had refined its financing strategy to focus on initiatives in capital markets. He added that his company was benefiting a lot from its updated lease agreements and Google’s support.
TeraWulf said it aimed for long-term success by balancing Bitcoin mining and AI, as previously reported by Cryptopolitan. The latest deal with FluidStack is expected to rake in over $350 million in Annual revenue, with net operating margins of about 85% at the site level.
TeraWulf brings in Cayuga
Prager said the company’s second step in its long-term strategy was bringing in Cayuga through an eight-year ground lease with purchase options, securing exclusive rights to develop a 400 MW digital infrastructure site.
The CEO claimed the site was fully equipped with redundant fiber, industrial water intake, and high-capacity transmission. TeraWulf expects to bring over 130 MW online in 2027, with the potential to expand beyond that.
Prager boasted that these two deals increased the company’s platform capacity to more than one gigawatt (1 GW). He added that this capacity firmly positioned Lake Mariner and Cayuga as the company’s cornerstone assets for its future AI venture. TeraWulf’s CFO, Fleury, also mentioned that the Lake Mariner and Cayuga sites had the same advantages. He added that acquiring Beowulf Electricity and Data in Q2 further streamlined the company’s structure.
Prager also mentioned his company’s first HPC tenant, Core 42. Adding that the partnership was still outstanding and anticipated further growth for the relationship. Fleury said his company had invested heavily in its HPC business over the past 12 months. The CFO explained that everything was on schedule and on budget to deliver the anticipated capacity.
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