Live News • 8h
Kentucky Approves Power Deal Enabling TeraWulf’s $4 Billion AI Data Campus Expansion Kentucky regulators approved a major power agreement that allows TeraWulf’s Justified Data Campus in Kentucky to draw up to 482 megawatts of electric service, supporting a planned US$4b to US$4.5b buildout for AI and high-performance computing at the former Century Aluminum site.
Under the agreement, TeraWulf will cover market, transmission and delivery costs and fund required infrastructure. Regulators highlighted protections for existing utility customers and the provision of what they described as fair rates.
TeraWulf shares trade at US$15.48, with the stock up 21.5% year to date, while the price has declined 38.5% over the past 90 days.
This approval reduces a key regulatory and infrastructure hurdle for TeraWulf’s expansion plan. However, the size of the intended US$4b-plus investment and the company’s assumption of power and infrastructure costs underline execution, funding and project-timing risks for shareholders to weigh. Announcement • 13h
TeraWulf Receives Approval For 482 MW Power Agreement For Justified Data Campus In Hancock County Kentucky TeraWulf received approval from the Kentucky Public Service Commission for the Retail Electric Service Agreement supporting up to 482 megawatts of electric service for TeraWulf’s Justified Data Campus in Hancock County, Kentucky. The approval represents an important milestone for Justified and validates a strong model for responsible large-scale data center development: securing substantial power capacity while ensuring that project-specific costs and risks are borne by the large-load customer, protecting existing ratepayers and creating incremental value for utilities and local communities. In its August 21, 2026 order, the Commission concluded: 'After consideration of the entire record, the Commission finds that the proposed RESA contains adequate protections for existing customers, appropriately allocates financial and operational risks, establishes rates that are fair, just and reasonable, and provides for adequate and reliable service.' Under the approved structure, TeraWulf is responsible for the market, transmission, delivery and other costs attributable to serving its load, together with customer-specific infrastructure costs and substantial credit-support obligations. The agreement also includes negotiated demand adders and customer charges that provide incremental contributions to Big Rivers Electric Corporation and Kenergy Corp. The Commission specifically found that the direct pass-through of market and delivery costs ensures that TeraWulf bears the costs attributable to its service and that the customer-specific terms do not provide TeraWulf an unreasonable preference or advantage or subject other customers to an unreasonable prejudice or disadvantage. The Justified Data Campus is being developed at the former Century Aluminum Hawesville facility, where approximately 482 MW of existing transmission capability remains available following the closure of the aluminum smelter. Reusing existing industrial infrastructure allows TeraWulf to pair large-scale power availability with redevelopment of a previously industrialized site. The PSC also recognized the economic benefits associated with the project, including anticipated capital investment, employment and expansion of the local tax base. Based on current expected development costs of approximately $10 million to $12 million per MW of critical IT load, TeraWulf currently estimates approximately $4,000 million to $4,500 million of investment in site development and the initial data halls, exclusive of additional investment by customers in computing equipment and related infrastructure. The Commission stated that 'the proposed reuse of an existing industrial site, anticipated capital investment, employment, and additional tax base provide further support for the public-interest benefits asserted in the record.' The Commission further found that the RESA’s rate structure, credit protections, cost allocation and operational provisions provide adequate safeguards for system reliability and existing utility customers. The PSC’s approval authorizes Big Rivers and Kenergy to implement the RESA in accordance with its terms. TeraWulf believes the Justified structure demonstrates several principles that can support responsible development of large-scale digital infrastructure: Leverage existing infrastructure: Justified repurposes an established industrial site with substantial existing transmission capacity. Protect existing customers: Project-specific market, delivery and infrastructure costs are borne by TeraWulf rather than shifted to other utility customers. Align risk with the large-load customer: TeraWulf assumes market-price, load and customer-specific infrastructure risks and maintains significant credit support. Create incremental utility value: Negotiated demand charges and customer fees provide contributions to Big Rivers and Kenergy beyond reimbursement of the direct costs of serving TeraWulf. Drive durable local investment: The project is expected to bring billions of dollars of investment, new jobs and an expanded tax base to Hancock County and the Commonwealth of Kentucky. 
