TeraWulf surges 10% on 1GW Kentucky AI campus et

TeraWulf is making a much bigger bet on artificial intelligence infrastructure. However, it is not about chips anymore. It is about power. The company secured a 285-acre site in eastern Kentucky. It is expected to support more than 1 gigawatt (GW) of AI and high-performance computing capacity.

After the announcement, TeraWulf shares climbed 10.3% in the latest trading session. It traded at $25.18 at the press time. The new site, called the Muskie Data Campus, places TeraWulf among a growing list of firms racing to lock down massive electricity access.

AI’s Next Big Battle Is Over Electricity

AI-linked stocks extended their rally. Investors went on to buy Bitcoin miners linked stocks amid the emerging data centers and AI infrastructure trend. Hut 8 jumped by more than 6%, Keel gained 6.5%. Meanwhile, Micron surged by almost 20% to record highs after UBS raised its target. AMD also added another 5%.

The global crypto market took a dump. Its cumulative market cap dipped by around 2% to hit $2.54 trillion. Bitcoin price trailed back to the $75,000 levels while Ether hovers around $2,100.

A 1 GW AI campus is now considered hyperscale infrastructure. Sites of this size can reportedly support millions of advanced AI chips and large training clusters for next-generation AI models. It exceeds many traditional cloud campuses built over the last decade.

Investors have treated semiconductors as the primary bottleneck for AI growth over the years. That narrative is now changing quickly. Access to electricity, transmission infrastructure, and utility approvals is becoming the real constraint.

The Kentucky project fits directly into that trend. According to reports, Microsoft previously partnered with Constellation Energy around the Three Mile Island restart. It was tied to around 800 MW of projected capacity. Meanwhile, Amazon and Talen Energy have targeted some 2 GW of dedicated power capacity for AI data center operations.

TeraWulf’s AI Pivot Is Starting to Pay Off

The International Energy Agency estimates global data center electricity consumption could nearly double to around 945 terawatt-hours by 2030. This is largely driven by AI workloads. Meanwhile, Goldman Sachs projects that global data center power demand could rise roughly 50% by 2027. It added that it can potentially surge by 165% by 2030.

It is expected that the data centers currently consume around 4% to 5% of national electricity usage in the US. It is projected that this figure could hit 9% by the end of the decade.

Kentucky Power is reportedly building a 345-kV substation linked to a 765-kV transmission network. It would be capable of handling industrial-scale electricity demand. However, TeraWulf has already secured transmission and energy service agreements tied to the project. The rollout is expected to happen in phases.

The company plans to bring the first 500 MW online during the second half of 2028. Another 500 MW could be out by the second half of 2030.

TeraWulf already operates another 480 MW facility in the state. This means that Kentucky now hosts multiple large-scale AI and high-performance computing campuses.

TeraWulf originally built its business around Bitcoin mining. However, it has pivoted toward AI and HPC hosting. The transition is already showing up in financial results. It reported around $34 million in Q1 2026 revenue. It mentioned that $21 million of the revenue came from HPC leasing activities.

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