Bitcoin miner TeraWulf is accelerating its pivot into artificial intelligence infrastructure with a new $9.5 billion joint venture alongside AI cloud platform Fluidstack, supported by Google. The partnership will develop a 168-megawatt data center in Abernathy, Texas, marking one of the most significant expansions in the company’s history and a major milestone in the growing convergence of crypto mining and AI computing.
The project is backed by a $1.3 billion lease commitment from Google, underscoring Big Tech’s appetite for scalable, energy-efficient AI infrastructure. Under the deal, TeraWulf will hold a 51% ownership stake and secure a 25-year hosting contract, which the company estimates will generate around $9.5 billion in revenue over its term. Construction is expected to be completed in the second half of 2026.
TeraWulf said the facility will power “frontier-scale foundation model workloads” — high-performance computing systems that train and deploy advanced AI models. Each megawatt of critical IT load will cost between $8 million and $10 million, financed largely through project-level debt secured by Google’s lease obligations.
Expanding AI Infrastructure Footprint
This deal builds on a rapidly deepening partnership between TeraWulf and Fluidstack. Earlier this year, the two companies expanded their collaboration at TeraWulf’s Lake Mariner data center in New York, where they secured $3.7 billion in AI hosting contracts — again backed by Google, which provided a $3.2 billion lease guarantee and warrant position.
With the Texas project, TeraWulf also gained an exclusive option to invest in up to 51% of Fluidstack’s next 168 MW development under similar terms, signaling continued long-term cooperation between the two companies.
“We are very pleased to deepen our strategic alignment with Fluidstack and Google through this long-term joint venture,” said Paul Prager, TeraWulf’s CEO. “Our focus has always been on execution — and this agreement shows that strategy in action.”
Fluidstack co-founder César Maklary echoed that sentiment, emphasizing that the collaboration aims to deliver next-generation GPU clusters for foundation model developers.
“TeraWulf brings operational discipline, energy expertise, and development scale at precisely the moment the market needs sustainable, high-performance infrastructure,” he said.
Strong Financial Performance and Market Momentum
Alongside the announcement, TeraWulf shared preliminary third-quarter results showing revenue between $48 million and $52 million, up roughly 84% year-over-year. Adjusted EBITDA came in between $15 million and $19 million, up from $6 million during the same period in 2024.
CFO Patrick Fleury attributed the strong performance to the company’s transition toward high-performance computing (HPC) hosting contracts backed by investment-grade clients.
“Our growing contracted critical IT load reinforces the scalability of our platform and our ability to unlock value through disciplined capital deployment alongside world-class partners,” he said.
The company’s success has also caught Wall Street’s attention. Oppenheimer & Co. initiated coverage of TeraWulf this week with an “outperform” rating and a $20 price target, citing the firm’s expanding AI focus and low-cost renewable power portfolio as key growth drivers. The bank noted that global data center demand is expected to outpace supply in the coming years, positioning TeraWulf to grow its HPC portfolio by 250 to 500 MW annually.
Following the announcement, TeraWulf’s stock surged 25% to $16.92 in early Tuesday trading, according to market data. The stock has now gained more than 130% year-to-date, reflecting investor enthusiasm for bitcoin miners diversifying into AI infrastructure amid booming demand for computing power.
