TeraWulf Lands Google-Backed Financing for Texas AI Data Center

EASTON, Md. – December 18, 2025 – TeraWulf Inc. has secured major project financing for a massive new artificial intelligence data center in Texas, a deal significantly strengthened by the financial backing of tech giant Google. The successful pricing announced today paves the way for a 168-megawatt (MW) high-performance computing (HPC) facility in Abernathy, a joint venture with AI cloud platform Fluidstack that underscores the frenetic race to build the physical infrastructure required to power the AI revolution.

The financing supports the construction of a next-generation, liquid-cooled data center designed specifically for the intense demands of AI workloads. While the initial press release referred to a "leading global hyperscale partner," subsequent filings and industry analysis confirm Google is providing long-term credit enhancement, backing approximately $1.3 billion of Fluidstack's lease obligations. This support was instrumental in de-risking the project, strengthening its credit profile, and enabling the efficient capital formation needed for a project of this magnitude.

The AI Gold Rush Comes to Texas

The Abernathy project represents a critical step in addressing the global shortage of AI-ready computing capacity. The facility, which is on track for commissioning in the second half of 2026, will deliver 168 MW of critical IT load, with a gross power capacity of up to 240 MW. The joint venture, in which TeraWulf holds a 51% majority stake, has secured a 25-year hosting commitment that represents approximately $9.5 billion in contracted revenue, signaling immense long-term confidence in the project's viability.

This venture highlights a powerful synergy between TeraWulf, an owner and operator of low-carbon digital infrastructure, and Fluidstack, which builds and operates HPC clusters for major global companies. The partnership leverages TeraWulf's expertise in developing and powering large-scale sites with Fluidstack's platform and customer relationships.

"This financing represents another important step in scaling a platform that was designed from the outset to grow," said Paul Prager, Chief Executive Officer of TeraWulf, in a statement. "We focused early on building sites, relationships, and structures that could adapt as the AI market evolved. Today’s environment validates that approach."

The Abernathy campus is designed for scalability. The joint venture retains the ability to expand well beyond the initial 168 MW phase, utilizing existing transmission lines, land, and development infrastructure to meet what analysts predict will be a sustained surge in demand.

Behind the Deal: Hyperscale Demand and Infrastructure Bottlenecks

The TeraWulf-Fluidstack deal is a direct response to the market's voracious appetite for AI compute. Industry projections forecast that data center power demand in the United States alone could triple by 2030, growing from roughly 30 gigawatts (GW) in 2025 to 90 GW, with AI workloads driving the majority of this expansion. This unprecedented growth has created significant bottlenecks, making new, purpose-built facilities a prized commodity.

The primary constraints are power, networking, and cooling. Modern AI clusters featuring thousands of power-hungry accelerators like GPUs require immense and stable electrical supplies, often pushing rack densities to levels that traditional air-cooled data centers cannot handle. This has made advanced liquid cooling, like that planned for the Abernathy site, a prerequisite for next-generation deployments. Furthermore, the high-speed, low-latency networking fabrics needed to connect these accelerators are another critical and expensive component that older facilities lack.

With available capacity tightening, market terms have become increasingly favorable for infrastructure owners like TeraWulf that possess scalable sites and a proven ability to execute complex projects. The involvement of a hyperscaler like Google not only provides financial stability but also validates the technical design and strategic location of the Abernathy project, positioning it as a highly competitive solution in a crowded market.

TeraWulf's Strategic Pivot to AI Infrastructure

For TeraWulf, this project marks a significant milestone in its strategic evolution. The company, which initially built its reputation as a vertically integrated, low-carbon bitcoin mining operator, has decisively pivoted to capitalize on the more lucrative and rapidly growing AI infrastructure market. This move mirrors the trajectory of other industry players, such as CoreWeave, which also transitioned from crypto mining to become a leading specialized AI cloud provider.

The company has been an early mover in structuring and financing large-scale AI colocation deals, establishing itself as a key partner for platforms like Fluidstack. TeraWulf has set ambitious goals, stating it expects to deploy an incremental 250 MW to 500 MW of HPC capacity annually. To date, it has already secured over 500 MW of such projects, with a substantial development pipeline still available to contract in what it views as an increasingly favorable market.

To fund this aggressive expansion while preserving balance sheet flexibility, TeraWulf has employed sophisticated financial strategies. The company has utilized multi-billion dollar convertible note offerings to fund its equity contributions to joint ventures like the Abernathy project and to enhance parent-level liquidity, signaling a clear focus on long-term growth in the sustainable computing sector.

Powering the Future: Sustainability and Regional Impact

A core component of TeraWulf's strategy and public branding is its commitment to sustainability. The company develops and operates what it describes as "environmentally sustainable, industrial-scale data center infrastructure" powered by "predominantly zero-carbon energy." As AI's energy consumption becomes a growing global concern, this focus on low-carbon power sources is a key differentiator.

The Abernathy facility's location in Texas is strategic in this regard. The state's ERCOT grid has one of the largest integrations of renewable energy in the country, particularly from wind and solar, providing a plausible pathway for sourcing the vast amounts of low-carbon power required to run the data center. By combining access to this power with its own energy infrastructure expertise, TeraWulf aims to deliver the reliable, sustainable, and scalable capacity that next-generation AI customers demand.

The project also signals the emergence of new technology hubs in previously unheralded regions. The massive investment in Abernathy is set to have a significant economic impact on the area, positioning West Texas as a new frontier in the digital age. This partnership between TeraWulf and Fluidstack is not just about a single data center; it's about creating a repeatable model for future growth.

"Fluidstack is pleased to build on its existing partnership with TeraWulf through this financing for our Abernathy project," commented Gary Wu, CEO and Co-Founder of Fluidstack. "This partnership strengthens our shared ambition to shape and deliver more next-generation capacity in our next joint venture development."

The successful financing and construction of the Abernathy campus is a testament to the intricate dance of capital, technology, and strategic foresight required to build the future of artificial intelligence.