Bitcoin mining company TeraWulf signed two decade-long hosting deals with AI cloud platform Fluidstack. The deals, which last ten years, will supply over 200 megawatts of high-performance computing power.
The transaction is worth roughly $3.7 billion for the initial time. It has two 5 year extensions as well, which can increase the overall sum to close to $8.7 billion.
The infrastructure will be based at TeraWulf’s Lake Mariner data center in Western New York. It’s exclusively designed for liquid-cooled workloads of artificial intelligence.
It is designed to meet the high-density and reliability needs of next-generation computing. TeraWulf’s integrated approach and use of mostly zero-carbon energy support the focus of the project.
TeraWulf Seeks Additional Expansion Funding
To enable the buildout, Google is providing up to $1.8 billion in guarantees on Fluidstack’s lease obligations. However, this assistance will help with project-specific debt funding.
Google, in exchange, will be entitled to warrants to purchase approximately 41 million TeraWulf shares. This represents approximately an 8% stake in the company.
However, TeraWulf will be raising incremental capital from the markets to fund part of the expansion. The deals also solidify Lake Mariner as a world-class hyperscale-ready campus.
Equipped with state-of-the-art cooling, dual high-voltage transmission lines, and ultra-low-latency connectivity, the location is set up to handle intensive AI work.
Deployment Timeline and Growth Potential
Each stage release will be incremental, as the first, which will supply roughly 40 megawatts of capacity, has an initial in-service date of the first half of 2026. Completion of the full 200+-megawatt deployment should be reached by the end of the same year. This roadmap offers Fluidstack significant short term capability to meet expanding AI demand.
Additionally, this lease arrangement comprises a modified gross lease arrangement on an annual basis. The net operating income margins at the site have been approximated at 85%, which works out to an annual $315 million. The total project cost ranges between $8 million $10 million for a critical IT high.
However, The deal offers Fluidstack 30-day exclusivity on the CB-5 expansion facility at Lake Mariner, which has the potential for 160 megawatts of capacity. With the deals, TeraWulf reaffirms its retreat from bitcoin mining and cements its role in powering high-end AI systems for major customers.
