TeraWulf, a U.S.-based Bitcoin miner and information middle operator, has signed a significant AI internet hosting deal value $3.7 billion with Fluidstack. The agreements cowl over 200 MW of high-performance computing capability at TeraWulf’s Lake Mariner campus. Google will backstop $1.8 billion of Fluidstack’s lease obligations and achieve an 8% fairness stake in TeraWulf.
Massive-Scale AI Internet hosting Agreements
The agreements between TeraWulf and Fluidstack span 10 years and purpose to ship over 200 MW of vital IT load. The Lake Mariner facility is designed to assist liquid-cooled AI workloads and high-density compute. Section one of many venture, totaling about 40 MW, is predicted to be on-line within the first half of 2026. The total deployment of 200+ MW is deliberate by the top of 2026.
The contracts additionally embody two five-year extension choices. If exercised, the overall contract worth might attain $8.7 billion. The lease construction is a modified gross lease with annual escalators. TeraWulf expects website web working revenue margins of 85%, translating to roughly $315 million yearly.
Google’s Function within the Deal
Google will backstop $1.8 billion of Fluidstack’s lease obligations to assist venture financing. In return, Google will obtain warrants for about 41 million shares of TeraWulf widespread inventory, giving it an 8% fairness place. This association aligns TeraWulf with one of many largest world AI companions.
TeraWulf plans to entry the capital markets to fund a portion of the venture. The corporate additionally obtained 30-day exclusivity for the CB-5 website at Lake Mariner, which might add an extra 160 MW of vital IT load.
Management Statements and Facility Capabilities
Paul Prager, Chief Govt Officer of TeraWulf, stated, “We’re proud to unite world-class capital and compute companions to ship next-generation AI infrastructure.” Nazar Khan, Chief Expertise Officer, added, “Our Lake Mariner campus is purpose-built for demanding AI workloads with closed-loop water cooling and ultra-low-latency fiber connectivity.”
Fluidstack co-founder César Maklary commented, “Our partnership with TeraWulf displays our shared dedication to delivering scalable infrastructure for AI labs worldwide.” The collaboration permits Fluidstack to increase its high-performance compute choices quickly utilizing a custom-made and scalable resolution.
TeraWulf Mission Price and Advisors
The overall venture price for TeraWulf’s AI internet hosting deployment is estimated at $8 million to $10 million per MW of vital IT load. Morgan Stanley serves as TeraWulf’s sole monetary advisor for the transaction. Authorized counsel is supplied by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stutzman, Bromberg, Esserman & Plifka, P.C.
TeraWulf operates environmentally sustainable, large-scale information facilities and focuses on high-performance computing internet hosting and Bitcoin mining. The corporate goals to serve its personal compute wants and people of top-tier purchasers. The Lake Mariner campus is now positioned as a number one hyperscale-ready website for AI workloads.