TeraWulf Inc, an owner, developer, and operator of large-scale digital infrastructure, has announced that it will be increasing contracted power capacity at its Muskie Data Campus in Eastern Kentucky on the back of an amended electric service agreement with Kentucky Power, an American Electric Power company.
According to a press release, TeraWulf will increase power capacity from 500 MW to 1 GW. This will bring forward delivery of Muskie’s second 500 MW phase from 2030 to 2029. The accelerated timeline is subject to Kentucky Public Service Commission (PSC) approval and Kentucky Power’s construction schedule. TeraWulf says the first 500 MW phase is set to begin ramping in 2028.
“Customer interest in Muskie has been tremendous, and power availability is central to those conversations,” said Paul Prager, TeraWulf Chairman and Chief Executive Officer. “Securing the next 500 MW and moving its planned delivery into 2029 gives us greater flexibility to meet prospective customers’ deployment needs. It also builds on the progress our teams have made with Kentucky Power since we acquired the site.”
TeraWulf acquired the Muskie Data Campus from Industrial Equity Partners in May. The site is located in the EastPark Industrial Park and occupies 285 acres of owned and controlled land capable of supporting hyperscale AI and high-performance computing infrastructure. There is also optional acreage adjacent to the site that can be used for future expansion.
Kentucky Power is constructing a 345 kV substation that will connect to the existing 765 kV transmission network, providing redundant, utility-scale power infrastructure designed to support the full 1 GW campus. TeraWulf says it is evaluating the campus’s potential to support up to 2 GW of load over time, subject to additional utility planning, infrastructure, and agreements.
The Kentucky (PSC) has imposed several protections for Kentucky customers that TeraWulf must abide by. These include a 20-year minimum contract term, a 90 percent minimum billing floor even if actual use is lower, an early exit fee, limits on capacity reductions, and collateral equal to 24 times the previous maximum monthly non-fuel bill.
In August, w.media reported that TeraWulf received approval for a Retail Electric Service Agreement to support 482 MW of electrical service at its Justified Data Campus in Kentucky. According to the Kentucky PSC, based on current expected development costs of between US$ 10 million and US$ 12 million per MW of critical IT load, TeraWulf will invest between US$ 4 billion and US$ 4.5 billion in the initial data halls and site development.