TeraWulf (WULF) jumped 13% in early Tuesday trading after the company disclosed it had acquired the Muskie Data Campus in eastern Kentucky — a hyperscale site capable of supporting more than 1 gigawatt of AI and high-performance computing infrastructure over time.
The stock was trading higher as investors responded to the scale of the deal and what it signals about the company’s direction.
The property sits on roughly 285 acres within a 1,000-acre industrial park called EastPark. Site work has already begun, and much of the zoning and permitting is reportedly in place.
TeraWulf said it expects the first 500 megawatts to be operational in the second half of 2028. A second 500 MW phase is targeted for the second half of 2030.
Kentucky Power, an American Electric Power subsidiary, is building a 345 kV substation to connect the site into an existing 765 kV transmission network — the kind of grid-scale interconnection that AI data center operators are increasingly competing for.
TeraWulf CEO Paul Prager was direct about what’s actually driving competition in this market: “The defining constraint is no longer computing hardware. It is power, transmission infrastructure, and execution certainty.”
The Kentucky deal expands TeraWulf’s total footprint in the state to more than 2.8 GW across two projects.
That positions the company as one of the larger holders of planned AI-ready power capacity among publicly listed operators.
The acquisition came from Industrial Equity Partners, though financial terms were not disclosed.
The numbers tell the story plainly. In Q1 2026, TeraWulf generated $34 million in total revenue. HPC leasing brought in $21 million. Bitcoin mining contributed less than $13 million.
AI compute has officially overtaken Bitcoin as the company’s primary revenue driver — and that’s before the Kentucky campus delivers a single megawatt.
Q1 did include a net loss of $427.6 million, driven largely by non-cash warrant revaluation, stock-based compensation, and impairment charges. The balance sheet still carries the weight of legacy mining assets.
The broader sector moved higher alongside WULF. Hut 8 climbed 7%, Keel Infrastructure (formerly Bitfarms) rose 6.5%, IREN gained nearly 5%, and Cipher Mining advanced 5.5%.
Memory chipmaker Micron (MU) also surged 15% to record highs above $870 after UBS raised its price target to $1,625, citing strong AI-driven memory demand. Advanced Micro Devices (AMD) gained 5%.
TeraWulf is not alone in this pivot. Core Scientific sold $208.3 million worth of Bitcoin in Q1 to fund its own AI buildout, with colocation revenue rising to $77.5 million against mining revenue of $30.1 million. Core has also outlined plans to convert its Pecos, Texas site into a 1.5 GW AI campus.
Bernstein has estimated more than $90 billion in announced AI infrastructure partnerships among listed miners, arguing they now control over 27 GW of planned power capacity.
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