TeraWulf and Fluidstack Form $9.5 Billion AI Data Center Joint Venture

TeraWulf Inc., a digital asset mining and high-performance computing (HPC) infrastructure company, announced a major joint venture with Fluidstack Ltd., a cloud computing provider, on October 28, 2025, to expand its AI-focused data center capabilities. The deal marks a strategic pivot for TeraWulf from primarily Bitcoin mining toward sustainable AI and HPC infrastructure.

Under the agreement, the parties will develop and deliver 168 MW of critical IT load at the Abernathy, Texas campus, backed by an investment-grade, long-duration infrastructure commitment. The venture aims to manage AI workloads at a cost of $8–10 million per megawatt, injecting approximately $9.5 billion in contracted revenue, with TeraWulf holding a 51% stake. Google has pledged about $1.3 billion to support Fluidstack's project financing, and the lease term is set for 25 years, though it could be shortened to 20 or 15 years at Fluidstack's discretion.

Paul Prager, CEO of TeraWulf, emphasized execution in practice, stating, "Today’s transaction demonstrates that execution in practice." He highlighted that securing over 510 MW of critical IT load in the past 10 months validates the company's growth strategy. TeraWulf's equity contributions will be made in staged installments, preserving balance sheet flexibility without issuing new equity securities or warrants.

César Maklary, Co-Founder and President of Fluidstack, praised the partnership, saying, "Fluidstack is proud to partner again with TeraWulf as we expand our platform to support next-generation GPU clusters for foundation model developers." The Abernathy facility is slated for delivery in the second half of 2026, and TeraWulf aims to add 250 MW to 500 MW of contracted IT load annually, strengthening its position as a low-carbon digital infrastructure provider.

This venture follows TeraWulf's earlier agreement with Core42, a UAE-based AI cloud provider, for a 60 MW contract with a 10-year term and extension options, expected to generate about $1.6 million per MW in base rent initially. TeraWulf's shares surged 20–22% on the announcement, reaching approximately $16.76, reflecting market optimism. The transaction was advised by Morgan Stanley and Paul, Weiss, Rifkind, Wharton & Garrison LLP.