TeraWulf stock surges 30% on $3.7 billion AI infrastructure deals with Fluidstack.

TeraWulf (WULF) stock surged 30% after announcing two AI infrastructure deals worth $3.7 billion with Fluidstack. The deals are projected to bring in $3.7 billion in revenue over the first ten years and include two five-year extension options. TeraWulf will provide over 200 MW of high-density computing power at its Lake Mariner campus in Western New York, with the first phase expected to start operating in 2026. The company also secured an 80-year lease at its Cayuga site to expand its high-performance computing and AI data centers.

TeraWulf Inc. (WULF) saw its stock surge by 30% following the announcement of two significant AI infrastructure deals with Fluidstack. The agreements, which are expected to generate $3.7 billion in revenue over the initial 10-year period, include two five-year extension options that could potentially increase the total contract revenue to $8.7 billion. The company will provide over 200 MW of high-density computing power at its Lake Mariner campus in Western New York, with the first phase expected to start operating in the first half of 2026.

The agreements mark a strategic expansion for TeraWulf, which is already a leading provider of vertically integrated, predominantly zero-carbon digital infrastructure. The company's Chief Executive Officer, Paul Prager, commented, "This is a defining moment for TeraWulf. We are proud to unite world-class capital and compute partners to deliver the next generation of AI infrastructure, powered by low-cost, predominantly zero-carbon energy." [1]

In addition to the AI deals, TeraWulf has secured an 80-year lease at its Cayuga site to expand its high-performance computing and AI data centers. This lease will provide the company with substantial growth potential, further cementing its position in the hyperscale AI infrastructure market.

Google has also shown significant support for the project, backing $1.8 billion of Fluidstack's lease obligations and receiving a 41 million share stake in TeraWulf, equating to an approximately 8% pro forma equity ownership stake. This backing underscores the confidence in TeraWulf's capabilities and the strategic importance of the Lake Mariner campus.

The deals highlight TeraWulf's commitment to innovation and operational excellence, with the company's Chief Technology Officer, Nazar Khan, noting, "With dual 345 kV transmission lines, closed-loop water cooling, and ultra-low-latency fiber connectivity, this campus is purpose-built for today’s most demanding AI workloads." [1]

The expected site net operating income (NOI) margins of 85% imply an annual revenue of approximately $315 million, further underscoring the financial viability of the project. TeraWulf's ability to attract top-tier clients and secure strategic partnerships positions it well for future growth in the high-performance computing and AI data center market.

References:
[1] https://investors.terawulf.com/news-events/press-releases/detail/112/terawulf-signs-200-mw-10-year-ai-hosting-agreements-with