TeraWulf Stock Surges After Securing $3.7 Billion Deal with Fluidstack and Google

TeraWulf Inc. WULF has announced two 10-year HPC colocation agreements with Fluidstack worth $3.7 billion in contracted revenue. Alphabet's Google will backstop $1.8 billion of Fluidstack's lease obligations and receive warrants to acquire approximately 41 million shares of TeraWulf common stock, equating to an 8% pro forma equity ownership stake. The agreements represent a significant milestone for TeraWulf, a leading data center infrastructure company in the US.

TeraWulf Inc. (WULF) has announced two 10-year high-performance computing (HPC) colocation agreements with Fluidstack, a premier AI cloud platform, representing a significant milestone for the company. The agreements, totaling approximately $3.7 billion in contracted revenue, underscore TeraWulf's position as a leading provider of hyperscale AI infrastructure.

Under the agreements, TeraWulf will deliver more than 200 MW of critical IT load at its Lake Mariner data center campus in Western New York. The facility is engineered to meet the scale, density, and resiliency required for next-generation compute workloads. The agreements include two five-year extension options, which, if exercised, would bring the total contract revenue to approximately $8.7 billion [1].

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 8% pro forma equity ownership stake. This aligns TeraWulf with one of the most influential global AI partners [1].

The rapid deployment schedule calls for approximately 40 MW of critical IT load to be online in the first half of 2026, with the full 200+ MW deployed by year-end 2026. This will deliver substantial near-term capacity to Fluidstack, enabling the company to meet the growing demands of its AI clients [1].

Paul Prager, Chief Executive Officer of TeraWulf, 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. This transaction underscores Lake Mariner’s status as a premier hyperscale-ready campus and further accelerates our strategic expansion into high-performance compute" [1].

Nazar Khan, Chief Technology Officer of TeraWulf, added, "Fluidstack’s commitment underscores the exceptional quality and readiness of our Lake Mariner facility and the capabilities of our team. 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. Our close collaboration with Fluidstack allowed us to design a fully customized, scalable solution" [1].

The transaction highlights TeraWulf's strategic focus on environmentally sustainable, industrial-scale data center infrastructure, purpose-built for high-performance computing (HPC) hosting and bitcoin mining. The company is committed to innovation and operational excellence, serving both its own compute requirements and those of top-tier HPC clients as a trusted hosting partner [1].

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