TeraWulf (WULF) surged 13% in early trading on Tuesday following the announcement of its major AI and high-performance computing (HPC) expansion in Kentucky. The company disclosed the acquisition of the Muskie Data Campus, a 285-acre hyperscale site within the EastPark industrial park in eastern Kentucky. The site is designed to support more than 1 gigawatt of AI and HPC infrastructure over time.
Phase one of the development is expected to deliver an initial 500 megawatts starting in the second half of 2028, with a second 500-megawatt phase targeted for 2030. Kentucky Power, a subsidiary of American Electric Power, is constructing a 345 kV substation to connect the campus to an existing 765 kV transmission network — a crucial advantage as access to robust power infrastructure becomes the primary bottleneck in the AI boom.
CEO Paul Prager emphasized the shift in industry constraints: "The defining constraint in this market is no longer computing hardware. It is power, transmission infrastructure, and execution certainty." The acquisition expands TeraWulf’s total Kentucky footprint to more than 2.8 GW across two projects, positioning it as a leading holder of planned AI-ready power capacity among publicly listed operators.
The company’s revenue mix already reflects this pivot. In Q1 2026, TeraWulf generated $34 million in total revenue, with HPC leasing contributing $21 million — surpassing Bitcoin mining revenue of less than $13 million for the first time. Despite a net loss of $427.6 million driven largely by non-cash charges, investors focused on the long-term potential of the AI infrastructure business.
The rally extended across the sector, with other crypto miners that have embraced AI data centers also gaining: Hut 8 climbed 7%, Keel Infrastructure (formerly Bitfarms) rose 6.5%, IREN gained nearly 5%, and Cipher Mining advanced 5.5%. The news also highlighted a broader trend where bitcoin miners increasingly reposition themselves as AI and HPC operators, a shift that has attracted significant investor interest over the past year.
