Full Breakdown
TeraWulf Secures $19 B Anthropic Lease, Accelerates Shift from Bitcoin Mining to AI Data Centers
7/7/2026, 12:05:39 PM
Background & Context
Founded as a Bitcoin mining operation, TeraWulf Inc. has redirected its capital toward high-performance computing. In February the company bought the former Century Aluminum smelter in Hawesville, Kentucky, gaining 250 acres, an energized substation and multiple transmission lines. An April service agreement with Big Rivers Electric Corp. secured long-term power delivery, laying the groundwork for a hyperscale AI campus.
Anthropic Lease and Kentucky Data Center
On July 6 2026, TeraWulf announced a 20-year lease with Anthropic, the creator of the Claude chatbot. Anthropic will occupy the Justified Data campus in Hawesville, a site designed for 401 MW of critical IT load. Initial power delivery is slated for the second half of 2027, with full capacity expected by early 2028. The agreement is projected to generate roughly $19 billion in contracted revenue over its term.
Abernathy Joint-Venture Sale
Simultaneously, TeraWulf disclosed the sale of its 50.1 % stake in the 168-MW Abernathy AI data-center joint venture in Texas to an investor group led by Fluidstack. The transaction is expected to return about $450 million, which the company plans to redeploy into wholly owned AI infrastructure projects.
Data & Statistics
- Capacity: 401 MW (Kentucky) vs. 168 MW (Texas)
- Revenue: $19 billion (lease)
- Capital Return: $450 million (Abernathy sale)
- Job Impact: ~100 permanent technical positions at the Kentucky campus; construction phase to create hundreds of short-term jobs.
- Tax Contributions: Projected $14 million annually in state sales tax and $7 million in school tax.
- Share-price Reaction: Pre-market gains reported at 12 % (Yahoo Finance), 13 % (CNBC), 16 % (CNBC), and up to 20 % (Construction Review).
Official Statements & Responses
TeraWulf’s chairman and CEO Paul Prager said the lease confirms the company’s strategic pivot, demonstrating its ability to secure power, develop infrastructure and lock in long-term customer commitments. He framed the Texas stake sale as a move to concentrate capital in assets where TeraWulf retains full ownership and operational control, positioning the firm for its “next phase of growth.” The company highlighted the investment-grade credit backing of the lease as a financial safeguard.
Criticism & Opposition
Local residents have organized an online petition (1,200 + signatures) urging county officials, the governor and the state utility regulator to pause approvals until energy, environmental and infrastructure impacts are fully disclosed. Opponents cite concerns over the campus’s 401 MW power draw, potential strain on the regional grid, and the adequacy of tax-exemption policies for data-center projects. Legislative attempts to protect ratepayers from subsidizing such energy upgrades failed in the April 2026 General Assembly session.
Why It Matters / Impact
The deal illustrates a broader trend of cryptocurrency miners leveraging existing power-rich sites to enter the AI-infrastructure market, a sector estimated to require $50 billion in near-term capital. By locking in a multi-decade, high-value contract, TeraWulf aims to replace volatile mining revenues with predictable cash flows, potentially reshaping its risk profile and influencing investor sentiment toward miner-turned-infrastructure firms.
Timeline
- Feb 2026: Acquisition of former Century Aluminum smelter (Hawesville).
- Apr 2026: Big Rivers Electric service agreement filed.
- Jul 6 2026: Anthropic lease announced; Abernathy stake sale disclosed.
- H2 2027: First power delivery to Kentucky campus.
- Early 2028: Full 401 MW capacity operational.
What’s Next
Key milestones include meeting the H2 2027 power-up schedule, completing construction of the two data-center buildings, and deploying the $450 million capital from the Texas sale into additional wholly owned AI projects. Monitoring regulatory approvals and community engagement will be critical to maintaining project momentum.
Verbatim Quotes
- “The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies,” — Paul Prager, CEO, TeraWulf
- “creates a framework for future expansion, and demonstrates the value of our ability to source power, develop infrastructure, and secure long-term customer commitments.” — Paul Prager, Chairman & CEO, TeraWulf
- “The lease provides approximately $19 billion of contracted lease revenue over its initial term,” — Paul Prager, CEO, TeraWulf
- “Together, these transactions position TeraWulf for its next phase of growth,” — Paul Prager, CEO, TeraWulf
- “Prager added the deal creates a framework for future expansion and demonstrates TeraWulf’s ability to source power, develop infrastructure, and lock in long-term customer commitments.” — Paul Prager, CEO, TeraWulf
