TeraWulf Stock Skyrocketed 21% In Pre-Market Today – What’s The $3.7 Billion AI Data Center Deal About?

TeraWulf Inc. (WULF) announced a major step in its AI infrastructure business on Thursday, securing two long-term agreements with Fluidstac, a cloud platform that builds and operates high-performance compute (HPC) clusters for global enterprises. 

Under the 10-year contracts, TeraWulf will deliver over 200 megawatts (MW) of high-density IT power at its Lake Mariner campus in Western New York. The custom-built site is designed to handle demanding, liquid-cooled workloads critical to next-gen artificial intelligence compute. The contracts are expected to generate around $3.7 billion in revenue during the initial ten-year period.

TeraWulf stock surged over 21% in the pre-market session on Thursday. On Stocktwits, retail sentiment around the stock remained in ‘extremely high’ territory amid ‘extremely high’ message volume levels. 

A bullish user lauded the management for the deal.

The contracts are expected to generate around $3.7 billion in revenue during the initial ten-year period. There is also an option for two five-year renewals, which, if exercised, would bring the total contract revenue to approximately $8.7 billion.

TeraWulf aims to complete phase one with approximately 40 MW by mid-2026. The remaining capacity is slated to be operational before the end of that year.

Alphabet Inc.’s (GOOGL) (GOOG) Google has agreed to provide a $1.8 billion backstop on Fluidstack’s lease commitments, helping facilitate debt financing for the buildout. In exchange, Google will receive warrants to purchase roughly 41 million shares of TeraWulf, giving it an estimated 8% equity stake.

“This is a defining moment for TeraWulf,” said 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. 

TeraWulf stock has lost over 3% year-to-date and has gained over 62% in the last 12 months. 

Also See: Google Pours $9B Into Oklahoma Cloud Data Center To Boost America's AI Edge

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