TeraWulf forms $9.5 billion AI compute joint venture with Fluidstack

TeraWulf Inc. (NASDAQ: WULF) announced a 25-year joint venture with Fluidstack to develop 168 MW of critical IT load at its Abernathy, Texas campus. The partnership represents approximately $9.5 billion in contracted revenue to the joint venture over the lease term.

TeraWulf will hold a 51% majority stake in the joint venture, which will serve workloads for a global hyperscale AI platform developing foundation models. The facility is expected to be delivered in the second half of 2026.

Google will back approximately $1.3 billion of Fluidstack's long-term lease obligations to support project-related debt financing. The project will be financed separately, with TeraWulf making equity contributions in staged installments while maintaining majority governance rights.

The agreement expands TeraWulf's contracted high-performance computing platform to more than 510 MW of critical IT load. The company has secured this capacity within the past 10 months as part of a growth strategy targeting an additional 250 MW to 500 MW of contracted critical IT load annually.

The joint venture includes rights to develop additional phases at the Abernathy campus beyond the initial 168 MW. TeraWulf also secured exclusive rights to partner with Fluidstack on up to 51% of the next Fluidstack-led project of approximately 168 MW on similar commercial terms.

The project carries a total cost of $8-$10 million per MW of critical IT load and operates under a modified gross lease structure with annual escalators. The 168 MW represents critical IT load, with 240 MW gross capacity.

Morgan Stanley served as sole financial advisor to TeraWulf, with Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stutzman, Bromberg, Esserman & Plifka, P.C. providing legal counsel.

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