TeraWulf, an owner, developer, and operator of large-scale digital infrastructure, has received approval for a Retail Electric Service Agreement (RESA) from the Kentucky Public Service Commission (PSC) to support up to 482 MW of electrical service for the TeraWulf Justified Data Campus in Hancock County, Kentucky.
Under the approved structure, TeraWulf will be responsible for the market transmission, delivery, and other costs associated with serving its needs. TeraWulf’s obligations also include customer-specific infrastructure costs and substantial credit-support obligations. The Justified Data Campus is being built on the site of Century Aluminum Smelter, a former aluminum smelter set on a 790-acre industrial plot. The site has approximately 482 MW of existing transmission infrastructure.
“Power is the gating factor for AI infrastructure, but how you bring that power to market matters,” Paul Prager, TeraWulf Chief Executive Officer said in a press release. “At Justified, we’re taking a former industrial site with existing transmission infrastructure and putting it back to productive use at scale. We’re paying the costs associated with our load, protecting existing ratepayers, and making a significant long-term investment in Kentucky. We believe that’s the right model for responsible data center development, and the Commission’s decision is an important validation of that approach.”
The PSC estimates that, 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. Additional investment in compute power and related infrastructure is not accounted for in that estimate.
The campus is expected to deliver 480 MW of capacity when it begins operations in 2027.
TeraWulf started demolition and cleanup at the site last week in accordance with applicable state and federal requirements according to local news publication The Hancock Clarion. Demolition will take place in stages with special care being taken when removing hazardous materials from the site, which has sat empty since 2022.
“Our goal is to responsibly transform a long-standing industrial property into a modern digital infrastructure campus while protecting workers, neighboring communities and the environment throughout the process,” Pace Ralli, TeraWulf Vice President of Project Development, said of the demolition process.
The PSC said in its approval that the RESA contains adequate protections for existing customers, appropriately allocates financial and operational risks, establishes rates that are fair, just and reasonable and provides for adequate and reliable service. It also commended TeraWulf’s decision to reuse an existing industrial site.
As part of the approval, TeraWulf will also pay negotiated demand adders and customer charges that provide incremental revenue to Big Rivers Electric Corporation and Kenergy Corp. Big Rivers and Kenergy have been authorized to implement the RESA in accordance with the terms outlined therein.
Readers will recall that in July w.media reported that AI company Anthropic had signed a 20-year lease agreement with TeraWulf for space at the Justified Data Campus. That lease covers 401 MW of critical IT load and will generate US$ 19 billion in contracted revenue over the initial term.