TeraWulf and Fluidstack Form 168 MW AI Compute Joint Venture in Texas with $9.5 Billion Contracted Revenue

TeraWulf Inc. has executed a long-term high-performance computing joint venture with Fluidstack, an AI cloud platform that builds and operates HPC clusters for some of the world's largest companies, marking a significant expansion of the two firms' strategic partnership and underscoring the accelerating convergence of digital infrastructure and frontier AI development.

Under the agreement, the parties will develop and deliver 168 MW of critical IT load at the Abernathy, Texas campus, serving workloads for a global hyperscale AI platform developing frontier-scale foundation models. The facility is expected to be delivered in the second half of 2026. The 25-year hosting commitment represents approximately $9.5 billion in contracted revenue to the joint venture, with TeraWulf holding a 51% majority stake. The joint venture also holds the right to develop subsequent phases at the Abernathy campus beyond the initial 168 MW, leveraging existing transmission and development infrastructure to support incremental high-density capacity additions. The project carries a total cost of $8 million to $10 million per MW of critical IT load and is structured as a modified gross lease with annual escalators.

Separately, TeraWulf has secured the exclusive right to partner with Fluidstack for up to 51% of the next Fluidstack-led approximately 168 MW data center project on substantially similar commercial terms. The joint venture will be project-financed, with Google backing approximately $1.3 billion of Fluidstack's long-term lease obligations to support project-related debt financing, materially enhancing credit quality for project debt. TeraWulf's equity contributions to the joint venture will be made in staged installments, preserving corporate balance sheet flexibility while maintaining majority governance rights. No TeraWulf equity securities or warrants were issued in connection with the transaction.

As a result of this transaction, TeraWulf's contracted HPC platform now exceeds 510 MW of critical IT load. The company is executing on an upwardly revised growth strategy targeting an additional 250 MW to 500 MW of contracted critical IT load per year, having already secured 510 MW of contracted critical IT load in the last 10 months.

"We are very pleased to deepen our strategic alignment with Fluidstack and Google through this long-term joint venture," said Paul Prager, Chief Executive Officer of TeraWulf. "On our last conference call — immediately following the Lake Mariner announcement — I made clear that our focus was execution, execution, execution. Today's transaction demonstrates that execution in practice." Prager added that what began as a single site has matured into a repeatable, credit-enhanced platform model backed by Tier-1 partners, and that securing more than 510 MW of critical IT load in the past 10 months provides a direct proof-point of the company's growth strategy.

"Fluidstack is proud to partner again with TeraWulf as we expand our platform to support next-generation GPU clusters for foundation model developers," said César Maklary, Co-Founder and President of Fluidstack. "TeraWulf brings exceptional operational discipline, energy expertise, and development scale at precisely the moment the market requires hardened, sustainable infrastructure."

The transaction reflects a broader industry trend in which AI infrastructure developers are increasingly securing long-duration, investment-grade commitments to underpin the massive capital expenditure required for frontier model training. By pairing TeraWulf's low-carbon digital infrastructure and energy expertise with Fluidstack's AI cloud platform and Google's credit backing, the joint venture illustrates how hyperscale AI demand is reshaping the data center financing and development landscape. Morgan Stanley is serving as sole financial advisor to TeraWulf, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stutzman, Bromberg, Esserman & Plifka, P.C. are serving as legal counsel.