TeraWulf Stock Surges on $3B Google-Backed AI Data Center Plan
The move signals a strategic pivot from bitcoin mining to high-performance computing, leveraging a new partnership with Fluidstack.
Shares of TeraWulf (NASDAQ: WULF) climbed over 5% in after-hours trading following reports that the bitcoin miner is planning a major expansion into artificial intelligence infrastructure. The company is reportedly seeking to raise approximately $3 billion in a debt-financed deal to fund the construction of a new high-performance computing (HPC) data center with significant backing from Google.
The proposed expansion marks a significant strategic pivot for TeraWulf, which has traditionally focused on mining Bitcoin. By shifting toward the booming AI and HPC sector, the company aims to leverage its expertise in developing large-scale, low-cost power infrastructure to meet the surging demand for AI workloads. This news pushed the company's stock price near its 52-week high, reflecting strong investor optimism about the AI-focused venture.
At the core of the expansion are two , an AI cloud platform, for over 200 megawatts of capacity at TeraWulf’s Lake Mariner facility in New York. These contracts are projected to generate $3.7 billion in revenue over their initial terms. Underscoring the project's credibility, Google has reportedly , providing a backstop commitment that helps secure the necessary project financing. According to reports, Morgan Stanley is coordinating the potential transaction, which could be introduced to investors as early as October 2025.
This strategic shift allows TeraWulf to diversify its revenue streams beyond the volatile cryptocurrency market and establish a strong foothold in the rapidly growing AI infrastructure space. The company has emphasized its competitive advantage in securing grid access and utilizing low-cost, zero-carbon power for its operations, a critical factor for energy-intensive AI data centers. Investors will be closely watching for formal announcements regarding the debt financing and the project's construction timeline as TeraWulf begins its transformation into a key player in the high-performance computing industry.