TeraWulf Deepens AI Expansion With Google-Supported Fluidstack Partnership
TeraWulf (NASDAQ: WULF), one of the largest publicly traded Bitcoin miners, is accelerating its shift toward artificial intelligence infrastructure with a new $9.5 billion joint venture alongside Fluidstack, backed by a $1.3 billion lease commitment from Google.
The partnership will establish a 168-megawatt (MW) AI data center in Abernathy, Texas, designed to support high-performance computing (HPC) for frontier-scale AI models. The project pushes TeraWulfâs total contracted capacity beyond 510 MW, marking one of the most significant expansions in AI-linked data centers by a Bitcoin mining company.
The news fueled a sharp 25% rise in TeraWulfâs stock, trading at $16.92 on Tuesday â now up 134% year-to-date. Analysts at Oppenheimer initiated coverage with an âoutperformâ rating and a $20 price target, citing the companyâs AI integration and access to low-cost renewable energy as long-term growth drivers.
âThis joint venture underscores our focus on execution, execution, execution,â said TeraWulf CEO Paul Prager, highlighting the companyâs pivot toward AI infrastructure during a period of explosive demand for computing power.
Massive AI Investment Signals Strategic Transformation
The 25-year hosting agreement gives TeraWulf a 51% ownership stake, with project costs ranging between $8 million and $10 million per megawatt. The facility will be financed through project-level debt backed by Googleâs lease obligations, illustrating strong institutional backing.
Fluidstack co-founder CĂ©sar Maklary emphasized the partnershipâs goal to deliver ânext-generation GPU clusters for foundation model developers,â calling TeraWulfâs infrastructure âa critical backbone for sustainable AI growth.â
This deal follows a previous $3.7 billion AI hosting agreement at TeraWulfâs Lake Mariner site in New York, also supported by Googleâs multibillion-dollar lease guarantee. The Texas venture further cements the minerâs role as a key infrastructure provider for hyperscale AI networks.
Revenue Soars as Market Rewards AI Pivot
In conjunction with the announcement, TeraWulf reported preliminary Q3 revenue of $48â$52 million, up 84% year-over-year, with adjusted EBITDA rising to $15â$19 million from $6 million in the prior year. CFO Patrick Fleury attributed the surge to long-duration HPC hosting contracts backed by âinvestment-grade counterparties,â reinforcing the companyâs scalability and financial discipline.
âOur expanding contracted IT load highlights our ability to unlock value through disciplined capital deployment alongside world-class partners,â Fleury said.
As global data center demand continues to outpace supply, analysts expect TeraWulf to expand its HPC portfolio by 250â500 MW annually. The firmâs strategy â combining renewable energy assets with AI infrastructure â positions it at the intersection of clean energy, blockchain, and artificial intelligence.
The Abernathy project not only strengthens TeraWulfâs alignment with Google and Fluidstack but also underscores a broader shift â from crypto mining toward powering the next generation of AI computing.
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