Anthropic Signs 20-Year Lease for TeraWulf Data Center in Kentucky
Quick Look
- AI company Anthropic has signed a 20-year lease for a 400-megawatt data center in Hawesville, Kentucky, operated by TeraWulf.
- The deal is expected to generate $19 billion in revenue and boost TeraWulf's stock, which has already risen over 80% this year.
AI-generated summary
Why It Matters
AI company Anthropic has secured a long-term lease for a data center in Kentucky, signaling a strategic move into AI infrastructure by TeraWulf, a company pivoting from crypto mining.
Anthropic on Monday signed a 20-year lease to use a TeraWulf data center in Kentucky.
The data center, located about an hour southwest of Louisville in Hawesville, will have capacity of around 400 megawatts with first power delivery expected in the second half of 2027.
TeraWulf shares soared more than 16% in premarket trading. The lease is expected to generate around $19 billion in revenue over the initial term.
"The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies," CEO Paul Prager said.
TeraWulf also sold its 50% interest in a 168-megawatt data center in Abernathy, Texas to an investor group led by Fluidstack.
TeraWulf is a crypto mining company that has pivoted to AI data center infrastructure. Its stock is up more than 80% this year.
Open Questions
- What are Anthropic's specific AI development plans requiring this capacity?
- What are the terms of the sale of TeraWulf's Texas data center interest?
