Bitcoin mining firm TeraWulf Inc. (Nasdaq: WULF) has acquired a site in Eastern Kentucky zoned to support a hyperscale data center that is expected to support over 1 gigawatt of power capacity for AI and high-performance computing (HPC) workloads.
This so-called Muskie Data Campus was acquired from Industrial Equity Partners for undisclosed terms. It is situated within the 1,000-acre EastPark Industrial Park, and includes approximately 285 acres that can be developed.
WULF is up over 12% on the news, according to The Block's stock page.
According to the announcement, Kentucky Power is constructing a 345 kV substation connected to the existing 765 kV transmission network to support the full 1+ GW campus and energy service agreements were executed concurrently with the acquisition.
The move comes as former bitcoin mining firms continually expand into HPC and AI services, particularly by developing the data center infrastructure needed to support the compute-heavy industry.
TeraWulf's HPC business overtook its bitcoin mining segment for the first time in Q1 2026, representing about $21 million of its total $34 million quarterly revenue. The firm operates campuses in New York, Texas, and Maryland and has been converting some bitcoin-focused centers to support HPC workloads.
"TeraWulf is fundamentally a power infrastructure company that builds digital infrastructure, not the other way around," TeraWulf CEO Paul Prager said. "Our ability to identify, secure, and develop sites like Muskie reflects the advantages of our integrated approach and deep experience operating complex energy infrastructure assets."
The move also comes amid a backlash against data center development in the U.S. Some critics allege that data center construction can cause local electricity prices to rise and environmental issues, while supporters argue that data centers create jobs and tax revenue.
Muskie will be TeraWulf’s second major campus in Kentucky alongside its 480 MW site in Hancock County, according to the announcement.
"This project also reflects an important core strategy at TeraWulf: disciplined growth. We continue to focus on sites with durable power control, scalable expansion potential, strong utility relationships, and clear pathways to commercialization," Prager said.
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