TeraWulf Expands Strategic Partnership with Fluidstack to Develop $9.5 Billion AI Infrastructure Project Backed by Google

Bitcoin mining producer and publicly traded data center operator on Nasdaq, TeraWulf Inc. (ticker: WULF), announced on Tuesday that it is expanding its strategic partnership with Fluidstack, a company specializing in AI and high-performance computing (HPC) infrastructure. In its official statement, TeraWulf revealed that the partnership includes the formation of a new joint venture (JV) and the development of large-scale capacity for critical IT workloads, which is scheduled to become operational in the second half of 2026.

Joint Venture and Project Scope

TeraWulf and Fluidstack will establish a joint venture to develop 168 megawatts (MW) of critical IT load at the Abernathy campus in Texas, where TeraWulf will hold a majority ownership of 51%. The hosting contract has a duration of up to 25 years, with an estimated contracted revenue of approximately US$9.5 billion for the joint venture.

As part of the project structure, Google LLC is providing financial support by backing approximately US$1.3 billion in lease obligations, which will help facilitate project financing.The construction and operational phase of the project is targeted for completion in the second half of 2026.

Growing Capacity and Strategic Transformation

With this additional capacity, TeraWulf’s total contracted IT load in partnership with Fluidstack is projected to exceed 510 MW across all ongoing projects. Previously known primarily as a solar-powered and green grid-based Bitcoin miner, TeraWulf has made a strategic pivot toward high-performance computing (HPC) and AI hosting infrastructure. The expanded partnership with Fluidstack further solidifies this transformation.

Earlier, TeraWulf signed an agreement with Fluidstack for the development of over 200 MW of capacity at the Lake Mariner campus in New York, valued at approximately US$3.7 billion, with an extension potential of up to US$8.7 billion. The latest announcement highlights a substantial scale-up, from hundreds of megawatts to an additional 100+ MW capacity, under a 25-year long-term contract valued close to US$10 billion. This indicates that TeraWulf is not merely expanding its partnership but is also strategically doubling down on its ambitions in the AI and HPC segment.

Implications for TeraWulf and Stakeholders

1. Revenue Diversification:
Through long-term hosting contracts, TeraWulf gains stronger revenue visibility compared to relying solely on Bitcoin mining, which remains susceptible to BTC price volatility and electricity costs.

2. Scale & Infrastructure:

The 168 MW project in Texas, combined with prior developments, positions TeraWulf as a large-scale digital infrastructure provider capable of attracting global hyperscale AI clients.

3. Financing & Credibility:
Google’s involvement in project financing enhances credibility and improves the likelihood of timely execution.

4. Execution Risk:
Despite the project’s significant contract value, the main challenges lie in execution including financing, physical construction, operations, and ensuring access to reliable and affordable clean power for such a large-scale load.

TeraWulf’s Tuesday announcement marks a pivotal step in its transformation from a crypto mining company to a large-scale AI and HPC infrastructure provider. The partnership with Fluidstack is not only expanding in terms of capacity and contract value, but also strengthening TeraWulf’s long-term business model. However, actual success will heavily depend on execution quality from physical construction to ensuring stable power supply and network connectivity. For investors and stakeholders, this represents a critical phase that warrants close monitoring as TeraWulf transitions deeper into the AI-driven infrastructure era.