TeraWulf Inc. (Nasdaq: WULF) said on Monday, October 5, 2026, that it has doubled contracted power at its Muskie Data Campus in eastern Kentucky, lifting committed capacity from 500 megawatts to 1 gigawatt under a reworked power supply deal with Kentucky Power, which is part of American Electric Power.
The Muskie Data Campus is being developed for artificial intelligence and high-performance computing workloads, and the larger power commitment gives TeraWulf a bigger block of future capacity to market to prospective customers. The company acquired the site in May 2026 for phased development as an AI and HPC campus.
Muskie Data Campus agreement details
The amendment also moves up the planned delivery of the Muskie Data Campus's second 500 MW phase to 2029 from 2030, according to the company's announcement. Both the expanded capacity and the accelerated timeline remain subject to approval by the Kentucky Public Service Commission and to Kentucky Power's construction schedule.
The first 500 MW phase at the Muskie Data Campus remains targeted to begin ramping in 2028. TeraWulf plans to bring the site online in stages rather than all at once, and the two 500 MW phases together account for the full 1 GW now under contract.
Contracted power is not the same as live capacity, and the first meaningful capacity at the site is not targeted until the second half of 2028, meaning revenue from the campus sits years in the future, Crypto Briefing reported.
Utility structure and regulatory path
TeraWulf said the amendment follows its approach to large-scale development in Kentucky: coordinating with the utility on the infrastructure needed to serve the campus, providing financial protections for utility investment and structuring the agreement to benefit existing customers. To supply the site, Kentucky Power is building a substation with 765-kV and 345-kV lines that ties into the regional transmission network.
Under the arrangement, TeraWulf will also cover what it estimates Kentucky Power will spend to finance a 760 MW combined-cycle gas plant planned for Big Sandy, Stocktwits reported. Kentucky Power said the structure keeps the cost of serving the added demand off existing customers, and that residential customers would receive $100 million in winter bill credits spread across the contract's first 10 years, according to the company.
The utility expects to file the amended contracts with regulators later this year, and the agreement still requires Kentucky Public Service Commission approval. The company said work on the site will follow Governor Beshear's Executive Order on Data Center Development (2026-494).
In August, the commission signed off on a separate electric service agreement covering TeraWulf's Justified Data Campus in Hawesville, determining that the terms sufficiently safeguarded existing customers and properly divided the costs and risks tied to serving that project.
Prager on customer demand
Chairman and Chief Executive Officer Paul Prager pointed to demand for the site in announcing the expanded agreement. "Customer interest in Muskie has been tremendous, and power availability is central to those conversations," Prager said.
Prager had previously expressed optimism about scaling the site to as much as 2 GW, saying on the company's Q2 2026 earnings call on August 5 that abundant near-term power availability and existing infrastructure around the campus made a larger build look achievable, Crypto Briefing reported. The 2 GW figure remains an intention rather than a contract; TeraWulf has not said it has secured that much power.
Portfolio and market reaction
TeraWulf bought the Muskie Data Campus from Industrial Equity Partners on May 22, 2026, and the site was described at the time as adding over 1 GW of planned AI/HPC capacity, according to Crypto Briefing. The campus sits inside a 1,000-acre industrial park and is positioned as one of the company's largest scalable development sites in Kentucky.
The company's business is building, owning and running large-scale, power-backed digital infrastructure across the United States, with facilities designed for HPC and AI workloads. It operates the Lake Mariner Data Campus in New York, where portions of existing bitcoin-mining infrastructure are being repurposed to support contracted HPC development, while further large-scale campuses are being developed or pursued across Kentucky, New York and Maryland.
WULF stock edged lower on Monday morning, snapping a two-day winning streak after the announcement, Stocktwits reported. The shares have gained over 30% so far this year and are up over 12% in the last 12 months.
What comes next for the Muskie Data Campus
The milestones to watch are updates on customer agreements for Muskie, progress toward the 2028 first phase and any additional power commitments that would move the 2 GW goal from aspiration to contract, according to Crypto Briefing.
TeraWulf cautioned that its statements about anticipated future events are forward-looking and subject to risks and uncertainties, and that there can be no assurance future developments will match expectations. The company said it does not assume any obligation to publicly update forward-looking statements except as required by law, and referred investors to the risk factors in its SEC filings.
Conclusion
TeraWulf's amended agreement with Kentucky Power doubles contracted power at the Muskie Data Campus to 1 GW and pulls the second 500 MW phase forward to 2029 from 2030, with the first phase still targeted to ramp in 2028. The next concrete steps are Kentucky Power's filing of the amended contracts with regulators later this year and the Kentucky Public Service Commission's decision on approval, which the expansion and the accelerated timeline both require.
Frequently Asked Questions
How much power has TeraWulf contracted at the Muskie Data Campus?
TeraWulf has contracted 1 gigawatt of power at the Muskie Data Campus in eastern Kentucky, up from 500 megawatts, under a reworked electric service agreement with Kentucky Power announced on October 5, 2026. The 1 GW is split into two 500 MW phases.
When will the Muskie Data Campus come online?
The first 500 MW phase is targeted to begin ramping in 2028, with the first meaningful capacity expected in the second half of that year. The second 500 MW phase was moved up to 2029 from 2030, subject to regulatory approval and Kentucky Power's construction schedule.
Does the TeraWulf Kentucky Power agreement need regulatory approval?
Yes. The amended agreement requires approval from the Kentucky Public Service Commission, and Kentucky Power expects to file the amended contracts with regulators later this year. In August, the commission approved a separate agreement for TeraWulf's Justified Data Campus in Hawesville.
What does the Muskie deal mean for Kentucky Power residential customers?
According to the company, Kentucky Power said residential customers would receive $100 million in winter bill credits spread across the contract's first 10 years, about $25 per month for a typical household in the winter heating season. TeraWulf will also pay estimated financing costs for Kentucky Power's planned 760 MW gas plant at Big Sandy.
Could the Muskie Data Campus expand to 2 GW?
CEO Paul Prager said on the August 5 Q2 2026 earnings call that the site could scale to as much as 2 GW, citing near-term power availability and existing infrastructure. TeraWulf has not contracted that amount; the 2 GW figure remains a stated intention rather than a commitment.
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