The company announced a new joint venture with Fluidstack Ltd., marking its most significant move yet in transforming from a crypto miner into a full-scale AI and high-performance computing (HPC) infrastructure provider.

The partnership will see the two companies collaborate on a massive 168-megawatt (MW) data center project in Abernathy, Texas, aimed at servicing AI workloads at unprecedented scale. The plan, valued at $9.5 billion in contracted revenue, immediately sent TeraWulf’s stock up by more than 20% on Tuesday.

Building the Backbone of AI Infrastructure

Unlike the firm’s early ventures in cryptocurrency mining, this new project is designed to handle data-intensive computing for large AI models and enterprise clients. TeraWulf will control 51% of the venture, ensuring it maintains majority ownership while benefiting from Fluidstack’s infrastructure financing network.

The development will reportedly cost between $8 million and $10 million per megawatt, putting it among the largest and most expensive data center projects in the United States. Google, which has been supporting Fluidstack’s scaling efforts, is said to have pledged $1.3 billion in backing to help fund the new buildout.

Fluidstack President César Maklary described the collaboration as a natural evolution: “The world needs hardened, energy-efficient AI infrastructure right now, and TeraWulf has proven it can deliver.”

A Strategic Reinvention for the AI Era

TeraWulf’s decision to shift from mining digital coins to hosting digital intelligence isn’t a coincidence. The explosion of AI-driven capital expenditures among global tech giants has created an entirely new market for data processing power — one where companies with access to cheap energy and large-scale infrastructure can thrive.

Over the past ten months, TeraWulf has quietly secured more than 510 MW of contracted HPC capacity, positioning itself as a growing player in AI hosting. CEO Paul Prager said the firm’s rapid progress is proof that its “execution-first” strategy is working.

“What we’re building is not a pivot for headlines — it’s a long-term infrastructure business designed for where the world is going,” he said.

Partnerships That Signal Long-Term Ambition

This isn’t TeraWulf’s first foray into AI computing. Earlier this year, it signed a 60 MW hosting agreement with Core42, a UAE-based AI and cloud firm backed by G42, Microsoft, and Mubadala Investment Company. That contract includes a 10-year term with options to extend, structured to provide steady, inflation-adjusted returns.

The deal with Fluidstack adds a U.S. footprint to complement TeraWulf’s international partnerships. Together, they form the foundation of a broader plan to add up to 500 MW of HPC capacity each year, significantly diversifying the company’s revenue beyond crypto mining.

Cost Advantage and Execution Edge

TeraWulf’s edge lies in its infrastructure. The company’s Lake Mariner facility in New York already has the electrical groundwork needed for large-scale expansion, reducing capital costs compared to competitors starting from scratch.

While the firm hasn’t yet turned a profit, it claims that its HPC projects are structured for strong margins — with total build-out costs projected at $430 million, or roughly $7.2 million per megawatt, well below industry averages. Analysts believe this efficiency could allow TeraWulf to scale faster than many of its peers as AI infrastructure demand accelerates.

A New Identity in the Making

By partnering with Fluidstack and attracting the backing of major technology players like Google, TeraWulf is repositioning itself at the crossroads of two explosive sectors: digital assets and AI compute. The once niche Bitcoin miner is now reinventing itself as a next-generation data infrastructure company — one that supplies the computational power fueling artificial intelligence itself.

If TeraWulf’s ambitious execution continues, it may soon be better known not for mining Bitcoin, but for mining the intelligence economy.

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Filed under: Bitcoin - @ October 29, 2025 6:05 am