The company purchased the Muskie Data Campus from Industrial Equity Partners (IEP) at EastPark Industrial Park in Eastern Kentucky. Financial terms were not disclosed. TeraWulf plans to bring the first 500 megawatts (MW) of capacity online in the second half of 2028, with a further 500 MW targeted for the second half of 2030. WULF shares jumped more than 12% on the announcement.

Kentucky Power, a subsidiary of AEP, is constructing a 345 kilovolt substation at the site, connected to an existing 765 kV transmission backbone. TeraWulf has secured long-term power agreements under an Industrial General Service tariff. CEO Paul Prager described the deal in terms that signal a fundamental shift in how the company defines itself. "TeraWulf is fundamentally a power infrastructure company that builds digital infrastructure, not the other way around," he said in the company's press release. He added that the defining constraint in the market today is no longer computing hardware but rather power, transmission infrastructure, and execution certainty.

Revenue Crossover Marks a Structural Break

TeraWulf's Q1 2026 earnings filing with the SEC shows the company brought in $21 million from HPC leasing against roughly $13 million from Bitcoin mining, producing total quarterly revenue of $34 million. The quarter marks the first time HPC exceeded mining as a revenue source. The company reported a net loss of $427.6 million, or $1.01 per share, reflecting the scale of capital being deployed into infrastructure construction.

TeraWulf holds approximately $3.1 billion in cash and restricted cash. The company has $12.8 billion in total contracted HPC revenue, with anchor tenants including Core42 (a subsidiary of Abu Dhabi-based G42) and Fluidstack, which is backed by Google. Google holds approximately 14% of TeraWulf and has committed $3.2 billion in financial support through Fluidstack, with a base contract of $6.7 billion that could extend to $16 billion. WULF shares have gained roughly 458% over the past 12 months.

The Muskie campus is TeraWulf's second large Kentucky facility. Its Justified Data campus in Hancock County carries a capacity of 480 MW.

At its Lake Mariner site in New York, the company had 60 MW of critical IT colocation capacity generating revenue as of March 31. That figure is not directly comparable to the 245 MW of Bitcoin mining capacity the site held at the end of 2025, as the two measures reflect fundamentally different infrastructure types. The company is progressively decommissioning mining operations and converting the site for HPC workloads.

A Gulf Sovereign Fund Is Already at the Center of This Pivot

The Core42 connection deserves attention from readers outside the United States. Core42 is owned by G42, the Abu Dhabi-based AI and cloud conglomerate backed by the UAE government. Its 72.5 MW lease at Lake Mariner was the foundational HPC contract that initiated TeraWulf's revenue transition, providing the first sustained stream of high-value colocation income that validated the company's strategic reorientation.

This means Gulf sovereign capital is not a future possibility in this story; it is already the revenue anchor that made the pivot viable. G42 has existing partnerships across the Gulf-to-India corridor, and the same capital pools involved here may become increasingly active in data centre conversations across South Asia and parts of Africa as demand for AI infrastructure grows.

What This Means Outside the US

For South Asian countries, India in particular, the TeraWulf model illustrates a capital flow that may eventually point toward regional AI compute infrastructure. Prager's argument that power delivery is the defining constraint in AI infrastructure, ahead of computing hardware, maps directly onto the structural barrier South Asian markets face: punitive tax treatment of crypto activity, high electricity tariffs, and inconsistent grid access continue to prevent the region from attracting the kind of long-term infrastructure capital TeraWulf has secured. As large US-listed miners redirect capital toward long-term AI hosting contracts, institutional Bitcoin mining grows more concentrated in jurisdictions with cheap, stable, grid-scale power. Most of South Asia does not yet qualify.

For Africa, the picture is similarly constrained. Ethiopia remains the continent's only entrant in the global top 10 mining countries in 2026, supported by hydroelectric power. Bitdeer operates a 40 MW facility there, illustrating that even the continent's most advanced mining market operates at modest industrial scale. The broader continent holds roughly 3% of global Bitcoin hashrate. The TeraWulf playbook of acquiring grid-connected land years before construction begins, locking long-term power tariffs, and signing hyperscaler tenants before breaking ground is a template worth studying for African governments and sovereign funds attempting to attract AI infrastructure investment. South Africa, Kenya, and Nigeria are each positioning for that role, but all face the same barrier Prager names: reliable power delivery at scale.

Looking Ahead

TeraWulf is one of several publicly listed miners executing this transition. Across the sector, companies including IREN and Core Scientific are among those that have collectively signed more than $70 billion in AI and HPC contracts since late 2024, according to S&P Global. The same firm projects that top miners including IREN, Core Scientific, and TeraWulf could derive more than 70% of their revenue from AI and HPC by the end of 2026, a benchmark against which TeraWulf's Kentucky and New York construction timelines will be closely watched.

Mining economics have deteriorated sharply since the April 2024 Bitcoin halving. US production costs are estimated above $100,000 per coin in some regions in 2026, and publicly listed miners are collectively reporting losses of roughly $19,000 per coin produced, according to S&P Global and Intellectia.ai.

Analysts have set a median price target of $30.81 for WULF, with a range of $25 to $41.50. Whether TeraWulf can convert its contracted revenue backlog into operating profit will depend on whether it can deliver the Kentucky and New York builds on schedule and on budget.