TeraWulf Acquires 285-Acre Kentucky Campus for 1 GW Power to Bolster AI Leasing
WULF•TeraWulf acquired a 285-acre Kentucky site of 1 GW capacity with buildout from late 2028 to 2030, prompting KBW to maintain its Outperform rating and $33 target. Kentucky Power is building a 345 kV substation tied to a 765 kV network, reducing delivery risk and boosting TeraWulf’s 2027 AI lease outlook.
1. Muskie Data Campus Acquisition
On May 22 TeraWulf closed the acquisition of the 285-acre Muskie Data Campus in Eastern Kentucky from Industrial Equity Partners, expanding its greenfield footprint. The site is located within the 1,000-acre EastPark Industrial Park and includes an option to acquire adjacent acreage for future expansion.
2. Capacity and Development Schedule
The campus is designed for roughly 1 GW gross capacity (800 MW net) with a phased buildout. The first 500 MW is slated to begin ramping in the second half of 2028, with the remaining 500 MW targeted for the second half of 2030 to support AI hosting growth.
3. Utility Partnership and Infrastructure
Kentucky Power, an AEP subsidiary, is constructing a 345 kV substation tied to the existing 765 kV transmission network under a PUC-approved industrial tariff. AEP is responsible for the bulk of transmission construction and long-lead equipment procurement, creating a defined energy delivery pathway.
4. Analyst Outlook and Execution Risks
KBW maintained its Outperform rating and $33 target, citing that the deal reinforces TeraWulf’s utility partnership strategy and lowers power delivery risk. Remaining company-specific risks involve local building permits and site construction at the greenfield location, which management views as manageable given existing industrial zoning.
