Large AI and high-performance computing (HPC) campuses live or die on contracted electricity. On 5 October 2026, TeraWulf announced it had executed an amended and restated electric service agreement with Kentucky Power, raising contracted capacity at its Muskie Data Campus in eastern Kentucky from 500 MW to 1 GW. [1]
These figures and timelines are company-reported, and the press release includes forward-looking statements.
What did the company announce?
According to TeraWulf’s release: [1]
- Contracted power at Muskie doubles to 1 gigawatt.
- Planned delivery of the second 500 MW phase advances from 2030 to 2029, subject to Kentucky Public Service Commission (KPSC) approval and Kentucky Power’s construction schedule.
- The first 500 MW phase remains targeted to begin ramping in 2028.
- Development is to proceed consistent with Kentucky Governor Beshear’s Executive Order on Data Center Development (2026-494).
TeraWulf says it acquired Muskie in May 2026 for phased development as an AI and HPC campus, and that Kentucky Power is developing a 765-kV / 345-kV substation to serve the site. The company also says it continues to evaluate potential for up to 2 GW over time, subject to further utility planning and agreements. [1]
HPC here means high-performance computing—dense clusters of specialised machines used for AI training and inference and other heavy workloads—not bitcoin mining itself. TeraWulf still operates bitcoin-mining infrastructure at Lake Mariner in New York, with portions being repurposed for contracted HPC. [1]
Why contracted power matters
A signed utility agreement does not by itself equal a finished data centre. But for multi-hundred-megawatt campuses, locked-in capacity and a delivery window are among the scarcest inputs. TeraWulf’s CEO, quoted in the release, ties the extra 500 MW and earlier 2029 target to customer-deployment conversations. [1]
The company notes that in August the KPSC approved a separate electric service agreement for its Justified Data Campus in Hawesville—context for how Kentucky regulators have treated a prior TeraWulf deal, not a guarantee for Muskie’s amendment. [1]
What this does not prove
- That the second 500 MW will arrive in 2029; timing depends on KPSC approval and utility construction. [1]
- That customers, financing or build-out for the full 1 GW are complete; the release stresses prospective demand and forward-looking risks. [1]
- That a future 2 GW campus is agreed; the company only says it is evaluating that upside. [1]
This article is not investment advice.
The Bottom Line
TeraWulf says Muskie’s contracted power with Kentucky Power now stands at 1 GW, with the second half aimed at 2029 if regulators and the utility’s build schedule cooperate. Treat the megawatts as a company-announced contract milestone, not as proof the campus is fully energised or fully leased.
Sources
- TeraWulf press release, 5 October 2026 — https://investors.terawulf.com/news-events/press-releases/detail/146/terawulf-expands-contracted-power-capacity-at-its-muskie-data-campus-to-1-gw
