Key points
- TeraWulf's amended agreement would double Muskie's contracted power
- Power for the second phase could arrive a year earlier
- The announcement names no Muskie customer
TeraWulf (WULF) has signed an amended power agreement that would double contracted capacity at its Muskie data center campus in Grayson, Kentucky, to 1 gigawatt from 500 megawatts. The agreement with Kentucky Power, an American Electric Power (AEP) company, still needs approval from the Kentucky Public Service Commission. The stock was up about 3% in premarket trading on Oct. 5.
The amendment would also move planned delivery of Muskie's second 500-megawatt phase to 2029 from 2030, depending on that approval and Kentucky Power's construction schedule. The first 500-megawatt phase is still targeted to begin ramping in 2028. Kentucky Power plans to file the amended contract and seek the related approvals later this year.
If the commission approves it, TeraWulf would fund $100 million in winter bill credits for Kentucky Power's residential customers over the first 10 years of the contract, the utility said. For a typical household, that could be about $25 a month during the winter heating season, starting in 2029.
"Customer interest in Muskie has been tremendous, and power availability is central to those conversations," Chairman and Chief Executive Paul Prager said. "Securing the next 500 MW and moving its planned delivery into 2029 gives us greater flexibility to meet prospective customers' deployment needs."
The announcement names no Muskie customer
Neither company's announcement names a tenant for Muskie. TeraWulf bought the site in May 2026 to develop as an AI and high-performance computing campus. Kentucky Power is developing a 765-kV/345-kV substation connected to the regional transmission network to serve it.
Muskie is a separate project from TeraWulf's Justified Data campus in Hawesville, Kentucky, where the company signed a 20-year lease with Anthropic in July. The Kentucky Public Service Commission approved the power agreement for Hawesville in August. TeraWulf said the commission found that its terms adequately protected existing customers.
TeraWulf is studying up to 2 GW
The company said it continues to evaluate Muskie's potential to support up to 2 gigawatts over time. That would depend on more utility planning, infrastructure and agreements. Development will follow Kentucky Gov. Andy Beshear's executive order on data center development, according to TeraWulf's release.
TeraWulf shares closed at $15.49 on Oct. 2. They traded at $15.98 in premarket trading at 8:45 a.m. Eastern on Oct. 5.
