Google Eyes TeraWulf Stake in $1.8B AI Compute Deal
Google Backs TeraWulf's AI Expansion with Potential Stake
American Bitcoin mining firm TeraWulf has entered into a significant agreement with Fluidstack, an AI cloud platform supported by Google. The deal, announced Thursday, involves a 10-year high-performance computing (HPC) colocation arrangement that could lead to Google acquiring a substantial stake in the company.
TeraWulf (WULF) will provide over 200 megawatts (MW) of critical IT load at its Lake Mariner data center campus in Western New York. This facility is specifically designed for liquid-cooled AI workloads.
Key Agreement Details:
- Contract Value: The total contract value could reach $8.7 billion if two five-year extension options are exercised.
- Google's Role: Google will backstop $1.8 billion of Fluidstack’s lease obligations to support project-related debt financing.
- Potential Stake: Google will receive warrants to acquire approximately 41 million shares of TeraWulf common stock, representing an 8% pro forma equity stake.
"This is a defining moment for TeraWulf," stated TeraWulf CEO Paul Prager. "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."
The initial phase of approximately 40 MW is slated to come online in the first half of 2026, with full deployment of over 200 MW expected by the end of 2026. The project's estimated total cost ranges from $8-10 million per MW of critical IT load.
César Maklary, Co-Founder and President of Fluidstack, commented, "Fluidstack is proud to be a trusted provider of critical compute for the world’s leading AI labs. Our partnership with TeraWulf reflects our shared commitment to delivering rapid, scalable infrastructure for the AI frontier."
Following the announcement of the new agreements, TeraWulf (WULF) shares experienced a surge of over 46% intraday.