TeraWulf Inc. (Nasdaq: WULF) announced on May 26, 2026 the acquisition of the Muskie Data Campus, a hyperscale high-performance computing development site in eastern Kentucky capable of supporting more than 1 gigawatt of AI and HPC capacity. The deal marks the most aggressive infrastructure commitment yet by a crypto-native operator making the shift from bitcoin mining to AI compute.
The campus, acquired from Industrial Equity Partners, occupies approximately 285 acres within the 1,000-acre EastPark Industrial Park. TeraWulf is targeting 500 MW of initial capacity ramping in the second half of 2028, with a second 500 MW tranche targeted for the second half of 2030. Kentucky Power, an AEP company, is constructing a 345 kV substation connected to the existing 765 kV transmission backbone to serve the site. Transmission infrastructure and energy service agreements were executed concurrently with the land acquisition.
The market read the announcement as unambiguously positive. WULF shares rose approximately 9% intraday on May 26, touching a 12-month high of $25.92 before pulling back to roughly $24.78. The stock has more than doubled since the start of 2026, reflecting investor appetite for the company's repositioning.
That repositioning is already showing up in the financials - though not yet in the bottom line. In Q1 2026, AI compute revenue surpassed bitcoin mining revenue for the first time in TeraWulf's history, even as the company reported a $427 million net loss for the quarter. CEO Paul Prager framed the Muskie acquisition as a direct extension of that thesis: "The defining constraint in this market is no longer computing hardware - it is power, transmission infrastructure, and execution certainty."
Muskie is TeraWulf's second major Kentucky campus. Its existing Justified Data facility in Hancock County operates at 480 MW. Together, the two sites would put TeraWulf among the largest power-controlled digital infrastructure operators in the United States if both campuses reach their stated capacity.
The deal fits a pattern that has been building across the crypto mining sector for the past 18 months. Operators including IREN, MARA Holdings, and Hive Digital Technologies have each moved to reposition data center assets toward AI and HPC workloads, attracted by the higher and more predictable revenue profile of colocation and cloud contracts versus bitcoin block rewards. TeraWulf's move stands out for scale: a single-site 1+ GW commitment is meaningfully larger than most of what peers have announced.
The structural argument behind these pivots rests on the same asset the Muskie deal centers on - power. Crypto miners built or acquired grid-connected sites with large transmission agreements specifically to run energy-intensive hardware. That infrastructure, once purpose-built for ASICs, maps directly onto the requirements of GPU clusters. The limiting factor for AI data center expansion is not capital or compute - it is permitted, transmission-connected land. TeraWulf's claim is that it can originate that asset class faster than operators starting from scratch.
Permitting is underway at Muskie and limited site preparation is required before construction can begin, according to the press release. TeraWulf stated the campus provides "a clear line of sight to near-term construction commencement."
Primary source: TeraWulf press release, GlobeNewswire, May 26, 2026. investors.terawulf.com