TeraWulf Inc. announced two 10-year high-performance computing (HPC) colocation agreements with Fluidstack, a premier AI cloud platform that builds and operates HPC clusters for some of the world?s largest companies. Under the agreements, TeraWulf will deliver more than 200 MW of critical IT load (representing ~250 MW of gross capacity) at its Lake Mariner data center campus in Western New York. Purpose-built for liquid-cooled AI workloads, the facility is engineered to meet the scale, density and resiliency required for next-generation compute.
The agreements represent approximately $3.7 billion in contracted revenue over the initial 10-year terms and include two five-year extension options which, if exercised, would bring the total contract revenue to approximately $8.7 billion. To support the buildout, Google will backstop $1.8 billion of Fluidstack?s lease obligations to support project-related debt financing and will receive warrants to acquire approximately 41 million shares of TeraWulf common stock, equating to an approximately 8% pro forma equity ownership stake?aligning TeraWulf with one of the most influential global AI partners. TeraWulf also plans to access the capital markets to fund a portion of the project.
Phase one?approximately 40 MW of critical IT load?is expected online in the first half of 2026, with the full 200+ MW deployed by year-end 2026, delivering substantial near-term capacity to Fluidstack. Contract Value: ~$3.7 billion across the initial 10-year terms, Lease Extensions: Two five-year options could increase total revenue to ~$8.7 billion, Lease Structure: Modified gross lease with annual escalators, escalatorsExpected Site Net Operating Income (NOI) Margins: 85% (implies ~$315 million annually), Total Project Cost: $8-$10 million per MW of critical IT load, Google Participation: $1.8 billion backstop of Fluidstack lease obligations in support of project-related debt; ~8% equity stake via 41 million warrants and Growth Potential: 30-day exclusivity for CB-5 at Lake Mariner (160 MW).
