The deal pulls the delivery of the second 500 MW phase forward to 2029 from 2030, while the first phase begins ramping in 2028. TeraWulf is currently evaluating further expansion to 2 GW and is upsizing its senior secured revolver from $250M to meet collateral requirements. Analysts estimate the 1 GW capacity could generate $2.4B in annual revenue once leased, while Kentucky Power plans to seek regulatory approvals from the Public Service Commission later this year.
Tuesday, October 20, 2026
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TeraWulf Funds 760MW Gas Plant and Gives $100M in Utility Credits
Business16 days ago
The Muskie data center in Kentucky will double its contracted power capacity to 1 GW through a new agreement with Kentucky Power to accelerate AI infrastructure growth. To secure the energy, TeraWulf has agreed to pay the estimated financing costs for the utility's planned 760 MW combined cycle generation facility at Big Sandy and provide $100M in winter bill credits to residential customers over the first 10 years of the contract, per an 8-K filing and AEP release. These credits, starting in 2029, are expected to average $25 per month per household during the winter heating season.
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