TeraWulf Secures $3.2B Google-Backed AI Hosting Expansion

TeraWulf and AI cloud provider Fluidstack have expanded a 10-year AI hosting agreement at the Lake Mariner campus from 200 MW to 360 MW of liquid-cooled, high-density compute capacity. The AI hosting arrangement, initially valued at $3.7 billion with a 40 MW phase scheduled by H1 2026 and full 200 MW deployment by end-2026, now adds a new 160 MW CB-5 data center, pushing total contracted revenue to $6.7 billion and potentially $16 billion with extension options. Google has increased its backstop commitment from $1.8 billion to $3.2 billion, securing warrants for 32.5 million TeraWulf shares (14% stake). TeraWulf expects 85% net operating margins, or roughly $315 million annually, bolstering its diversification beyond Bitcoin mining. Shares of WULF jumped 13% on the news.