The Kentucky Public Service Commission approved a Retail Electric Service Agreement authorizing up to 482 megawatts of electric service for TeraWulf Inc.'s (NASDAQ: WULF) Justified Data Campus in Hancock County, Kentucky, according to a company statement.

The commission issued its order on Aug. 21, 2026, finding that the agreement "contains adequate protections for existing customers, appropriately allocates financial and operational risks, establishes rates that are fair, just and reasonable, and provides for adequate and reliable service."

Under the approved agreement, TeraWulf bears market, transmission, delivery and customer-specific infrastructure costs, along with credit-support obligations. The structure also includes demand adders and customer charges that provide incremental contributions to Big Rivers Electric Corporation and Kenergy Corp., the utilities involved.

The campus is being developed at the former Century Aluminum Hawesville facility, where approximately 482 MW of existing transmission capacity remains available following the closure of the aluminum smelter. TeraWulf estimates total investment in site development and initial data halls at approximately $4.0 billion to $4.5 billion, based on expected development costs of roughly $10 million to $12 million per megawatt of critical IT load. That figure excludes additional investment by customers in computing equipment.

The commission noted that "the proposed reuse of an existing industrial site, anticipated capital investment, employment, and additional tax base provide further support for the public-interest benefits asserted in the record."

"Power is the gating factor for AI infrastructure, but how you bring that power to market matters," said Paul Prager, chief executive officer of TeraWulf. "We're paying the costs associated with our load, protecting existing ratepayers, and making a significant long-term investment in Kentucky."

The PSC's approval authorizes Big Rivers and Kenergy to implement the agreement in accordance with its terms. TeraWulf also operates the Lake Mariner Data Campus in New York and is developing additional campuses in New York and Maryland.