TeraWulf Power Expansion
TeraWulf Doubles Kentucky Data Campus Power Capacity to 1 Gigawatt for AI Development
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Key Points
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TeraWulf acquired the Muskie site in May 2026 from Industrial Equity Partners; the property covers 285 acres within a larger 1,000-acre industrial park.
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Kentucky Power is developing a 765-kV/345-kV substation connected to the regional transmission network to serve the Muskie campus.
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TeraWulf CEO Paul Prager said the additional 500 MW and earlier delivery target would give the company “greater flexibility to meet prospective customers’ deployment needs.”
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The project’s development is to follow Kentucky Governor Andy Beshear’s Executive Order on Data Center Development (2026-494). Separately, in August the Kentucky Public Service Commission approved an electric-service agreement for TeraWulf’s Justified Data Campus, finding that it protected existing customers and appropriately allocated costs and risks.
TeraWulf has doubled the contracted power capacity at its Muskie Data Campus in eastern Kentucky to 1 gigawatt, up from 500 megawatts, according to Market Screener. The company amended its electric service agreement with Kentucky Power to accelerate delivery of the second 500-MW phase to 2029, one year earlier than originally planned. The expansion supports TeraWulf's artificial intelligence and high-performance computing operations in the region.
CEO Paul Prager said the additional capacity and faster timeline give the company "greater flexibility to meet prospective customers' deployment needs," per Grafa. The first 500-MW phase is still expected to ramp up in 2028, pending state regulatory approval and Kentucky Power's construction schedule. TeraWulf is also evaluating whether the campus could eventually expand to 2 gigawatts, though that capacity is not yet contracted.
Kentucky Power Builds Out Regional Grid Connection
Kentucky Power is developing a dedicated 765-kV/345-kV substation to connect the Muskie campus to the regional transmission network, according to Market Screener. This infrastructure upgrade will supply the site's expanded power requirements. The utility's construction schedule directly affects when TeraWulf can begin operations at each phase of the project.
TeraWulf Secures 285-Acre Site Near Industrial Park
TeraWulf acquired the Muskie Data Campus property in May 2026 from Industrial Equity Partners, Market Screener reports. The 285-acre site sits within a larger 1,000-acre industrial park in eastern Kentucky. The location's strategic position near existing transmission infrastructure made it an attractive hub for the company's data center operations.
Financing Plans Include Debt and Credit Expansion
To support the expanded project, TeraWulf plans to increase its revolving credit facility and pursue additional secured debt, per Market Screener. These financing moves align with the company's long-term utility partnerships and capital-intensive data center buildout. The company is preparing for significant spending across both 500-MW phases.
State Regulators Back Data Center Projects Under Governor's Order
The Muskie expansion follows Kentucky Governor Andy Beshear's 2026 Executive Order on Data Center Development, per Market Screener. In August, the Kentucky Public Service Commission approved an electric-service agreement for TeraWulf's separate Justified Data Campus, finding it protected existing customers and fairly allocated costs and risks. These regulatory moves signal state support for the company's AI and computing infrastructure in the region.
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