TeraWulf Signs 200+ MW, 10-Year AI Hosting Agreements with Fluidstack

Core Insights - TeraWulf has established itself as a leading provider of hyperscale AI infrastructure through significant agreements with Fluidstack, anchoring approximately $3.7 billion in contracted revenues, with potential to reach $8.7 billion through lease extensions [1][3][12] Contractual Agreements - TeraWulf will provide over 200 MW of critical IT load at its Lake Mariner data center, designed specifically for liquid-cooled AI workloads, with a gross capacity of around 250 MW [2] - The agreements include two five-year extension options, which could increase total contract revenue to approximately $8.7 billion [3][12] Financial Backing and Equity - Google will backstop $1.8 billion of Fluidstack's lease obligations to support project-related debt financing and will receive warrants for approximately 41 million shares of TeraWulf common stock, equating to an approximately 8% equity stake [4][12] Deployment Timeline - The first phase of deployment, approximately 40 MW of critical IT load, is expected to be operational in the first half of 2026, with full deployment of over 200 MW by the end of 2026 [6] Leadership Commentary - TeraWulf's CEO emphasized the significance of this transaction in uniting capital and compute partners to deliver next-generation AI infrastructure powered by predominantly zero-carbon energy [7] - The CTO highlighted the facility's capabilities, including dual 345 kV transmission lines and ultra-low-latency fiber connectivity, tailored for demanding AI workloads [7] Transaction Highlights - The expected site net operating income (NOI) margins are projected at 85%, implying approximately $315 million annually [12] - The total project cost is estimated to be between $8 million and $10 million per MW of critical IT load [12]