TeraWulf, a U.S.-based Bitcoin miner and data center operator, has signed a major AI hosting deal worth $3.7 billion with Fluidstack. The agreements cover over 200 MW of high-performance computing capacity at TeraWulf’s Lake Mariner campus. Google will backstop $1.8 billion of Fluidstack’s lease obligations and gain an 8% equity stake in TeraWulf.
Large-Scale AI Hosting Agreements
The agreements between TeraWulf and Fluidstack span 10 years and aim to deliver over 200 MW of critical IT load. The Lake Mariner facility is designed to support liquid-cooled AI workloads and high-density compute. Phase one of the project, totaling about 40 MW, is expected to be online in the first half of 2026. The full deployment of 200+ MW is planned by the end of 2026.
The contracts also include two five-year extension options. If exercised, the total contract value could reach $8.7 billion. The lease structure is a modified gross lease with annual escalators. TeraWulf expects site net operating income margins of 85%, translating to roughly $315 million annually.
Google’s Role in the Deal
Google will backstop $1.8 billion of Fluidstack’s lease obligations to support project financing. In return, Google will receive warrants for about 41 million shares of TeraWulf common stock, giving it an 8% equity position. This arrangement aligns TeraWulf with one of the largest global AI partners.
TeraWulf plans to access the capital markets to fund a portion of the project. The company also received 30-day exclusivity for the CB-5 site at Lake Mariner, which could add an additional 160 MW of critical IT load.
Leadership Statements and Facility Capabilities
Paul Prager, Chief Executive Officer of TeraWulf, said, “We are proud to unite world-class capital and compute partners to deliver next-generation AI infrastructure.” Nazar Khan, Chief Technology Officer, added, “Our Lake Mariner campus is purpose-built for demanding AI workloads with closed-loop water cooling and ultra-low-latency fiber connectivity.”
Fluidstack co-founder César Maklary commented, “Our partnership with TeraWulf reflects our shared commitment to delivering scalable infrastructure for AI labs worldwide.” The collaboration allows Fluidstack to expand its high-performance compute offerings rapidly using a customized and scalable solution.
TeraWulf Project Cost and Advisors
The total project cost for TeraWulf’s AI hosting deployment is estimated at $8 million to $10 million per MW of critical IT load. Morgan Stanley serves as TeraWulf’s sole financial advisor for the transaction. Legal counsel is provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stutzman, Bromberg, Esserman & Plifka, P.C.
TeraWulf operates environmentally sustainable, large-scale data centers and focuses on high-performance computing hosting and Bitcoin mining. The company aims to serve its own compute needs and those of top-tier clients. The Lake Mariner campus is now positioned as a leading hyperscale-ready site for AI workloads.
Source: https://www.livebitcoinnews.com/bitcoin-miner-terawulf-lands-3-7b-ai-hosting-win-with-google-at-the-table/