Foreign media reported that TeraWulf acquired the Muskie Data Campus in eastern Kentucky, USA, with a planned capacity exceeding 1 gigawatt. The transaction demonstrates that the company, originally focused on Bitcoin mining, is further shifting its focus toward AI and high-performance computing infrastructure.
The project targets a 1-gigawatt capacity.
The article states that the site is located within a 1,000-acre industrial park, with the project occupying approximately 285 acres. According to the company’s disclosures, the first phase of 500 megawatts is expected to be delivered in the second half of 2028, and the second phase of 500 megawatts aims to be completed in the second half of 2030.
Site construction for the park has already begun, and some zoning and permitting processes have been completed. For mining companies, this type of rapidly advancing data center project is closer to a long-term infrastructure investment than simply expanding miner deployment.
Electricity access has become a critical resource.
The core of this acquisition is not just the land, but the grid interconnection conditions. According to company disclosures, Kentucky Power, a subsidiary of American Electric Power, is constructing a 345-kilovolt substation connected to the existing 765-kilovolt transmission network.
The article argues that for AI data centers, reliable large-scale power access is more important than the traditional mining narrative. Those who secure access to electricity, land, cooling, and grid connection resources are better positioned to serve hyperscale AI and HPC clients.
HPC revenue has surpassed mining.
In Q1, TeraWulf generated $34 million in revenue, approximately $21 million from HPC leasing and less than $13 million from Bitcoin mining. With this revenue structure, AI and high-performance computing have surpassed mining as the company’s primary revenue source.
The article also noted that the company still recorded a net loss of $427.6 million in the first quarter, primarily due to warrant revaluation, equity-based compensation, and impairment charges. This means that mining companies shifting to AI does not eliminate financial pressure, but the market is increasingly focused on whether their electricity and facility resources can be converted into long-term computing power revenue.
The transformation of mining companies has shifted from isolated cases to a growing trend.
The article notes that TeraWulf is not an isolated case; an increasing number of publicly traded mining companies are shifting their power resources from Bitcoin mining to AI data centers, as AI customers typically sign longer-term contracts and provide more stable cash flow.
The article also noted that Core Scientific had previously sold a portion of its Bitcoin to fund the construction of AI data centers and to transform its Pecos mine in Texas into an AI campus. Mining companies are increasingly viewing mining as a temporary use of power infrastructure rather than its sole ultimate purpose.