TL;DR
- TeraWulf formed a new AI joint venture with cloud provider Fluidstack.
- The project includes a $1.3 billion lease commitment from Google.
- Company stock increased 25 percent following the strategic partnership announcement.
TeraWulf is advancing its artificial intelligence strategy through a new partnership. The company formed a joint venture with AI cloud provider Fluidstack to develop a 168-megawatt data center in Abernathy, Texas. Google supports the project with a $1.3 billion lease commitment. Consequently, TeraWulf’s stock value rose 25 percent following the announcement.
This agreement increases TeraWulf’s contracted high-performance computing capacity beyond 510 megawatts. The venture secures roughly $9.5 billion in projected revenue over a 25-year term. TeraWulf holds a 51 percent ownership stake in the facility. Construction is scheduled for completion in the second half of 2026. The data center will host workloads for a global AI platform focused on large-scale foundation models.
Moreover, the companies recently expanded their collaboration at TeraWulf’s Lake Mariner site in New York. That earlier project involved $3.7 billion in AI hosting contracts backed by Google. The Texas initiative includes an option for TeraWulf to join another 168-megawatt build under similar terms.
TeraWulf released preliminary third-quarter results
Revenue is estimated between $48 million and $52 million, an 84 percent increase from the same period last year. Adjusted EBITDA ranged from $15 million to $19 million, compared to $6 million in the third quarter of 2024. The growth stems from a shift toward long-term high-performance computing contracts with reliable partners.
CEO Paul Prager stated the venture reflects the company’s continued execution of its strategic plan. Fluidstack co-founder César Maklary noted TeraWulf’s operational discipline and energy expertise align with market needs for durable infrastructure.
“What began as a single site has matured into a repeatable, credit-enhanced platform model backed by Tier-1 partners. This is exactly the evolution we outlined: converting advantaged infrastructure positions into contracted megawatts with investment-grade counterparties and doing so at strategic scale.”
Wall Street firm Oppenheimer began covering TeraWulf with an outperform rating and a $20 price target. Analysts cited the company’s AI initiatives and control of low-cost renewable energy sites. They expect global data center demand to outpace supply in coming years, positioning TeraWulf to add 250 to 500 megawatts to its portfolio annually.
