TeraWulf-Anthropic Deal Paves Way for Kentucky Data Center Construction

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

A deal for AI developer Anthropic to lease data center infrastructure from TeraWulf will pave the way for new construction in Kentucky.

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A Big Deal

This week, artificial intelligence (AI) company Anthropic signed a deal with TeraWulf, a bitcoin miner transitioning into AI data centers, to lease data center infrastructure in Hawesville, Kentucky, about 75 miles southwest of Louisville on the Indiana border.

Industrial Info Resources data show that TeraWulf plans to spend around $4 billion to renovate a former Century Aluminum smelter in Hawesville into a cutting-edge data center facility, supporting more than 400 megawatts of IT load. Industrial Info Resources has been reporting on the project since early this year, with reports indicating more than 250 buildable acres for selected engineering, procurement and construction firm Fluor Corporation to head up construction of the facility.

In line with TeraWulf's announcement, Industrial Info Resources data show the first phase of the data center is expected to be completed in mid-2027, followed by a Phase II expansion that will allow the data center to begin full operations in 2028.

With the deal expected to generate around $19 billion for TeraWulf, the company's share price shot up on the news, but the Kentucky project isn't the only data center project that TeraWulf has going.

Other TeraWulf Construction

One of TeraWulf's largest data center projects currently underway is its Lake Mariner AI data center in Barker, New York. Two of the planned buildings at the data center complex have been completed, with work on the remaining three expected to be completed in the summer of 2027.

TeraWulf also has acquired the site of a former coal-fired power plant in the Lansing, Michigan, area with plans to build at least a two-building facility, but with the Anthropic lease on the table, TeraWulf's work in Kentucky is expected to take top priority.

Key Takeaways

• TeraWulf has signed a deal with Anthropic to lease data center infrastructure in Hawesville, Kentucky.
• Industrial Info Resources data indicate TeraWulf will invest more than more than $2 billion in the site.
• TeraWulf also is constructing a multi-building AI data center complex in Barker, New York.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).