TeraWulf Inc., formerly a company focused primarily on Bitcoin operations, has announced a significant shift into the Artificial Intelligence (AI) and High-Performance Computing (HPC) sector. The company's new joint venture with Fluidstack Ltd. is a major move to transform TeraWulf into a full-scale AI infrastructure provider.
The Massive Abernathy Project
- Scope: The partnership centers on a colossal 168-megawatt (MW) data center project located in Abernathy, Texas.
- Revenue: The venture has secured $9.5 billion in contracted revenue, causing TeraWulf’s stock to jump over 20% immediately after the announcement.
- Ownership & Funding: TeraWulf will maintain majority control with a 51% stake. The development, which will service large AI models, is expected to cost between $8 million and $10 million per megawatt, with Google reportedly pledging $1.3 billion in backing to support the buildout.
A Strategic Reinvention for the AI Era
TeraWulf’s move is a direct response to the explosion of capital expenditure in AI infrastructure. By transitioning from mining digital coins to hosting digital intelligence, the company is capitalizing on the high demand for data processing power.
- Diversification: The company has quietly secured over 510 MW of contracted HPC capacity in the last ten months, positioning itself as a growing AI hosting player.
- Existing Partnerships: This new deal complements an earlier 60 MW, 10-year hosting agreement with Core42, an international AI and cloud firm backed by Microsoft and G42.
- Cost Advantage: TeraWulf's existing electrical infrastructure, particularly at its Lake Mariner facility in New York, gives it an edge. The company projects its total build-out costs at roughly $7.2 million per megawatt, which is below industry averages and allows for faster scaling.
CEO Paul Prager emphasizes that this is a long-term infrastructure business designed to serve the burgeoning intelligence economy, not merely a "pivot for headlines." TeraWulf is repositioning its identity from a Bitcoin miner to a next-generation data infrastructure company.
October 2025, Cryptoniteuae