TeraWulf has amended its electric service agreement with Kentucky Power, an American Electric Power (AEP) company, to increase contracted power capacity at its Muskie Data Campus in eastern Kentucky from 500 MW to 1 GW. The agreement also accelerates the planned delivery of the campus's second 500 MW phase from 2030 to 2029, while the initial 500 MW remains targeted to begin ramping in 2028. The amendment strengthens TeraWulf's power position at Muskie as the company develops the site for large-scale AI and high-performance computing workloads.
The 1 GW figure represents contracted electric service capacity rather than operating data-center capacity. The second phase remains subject to Kentucky Public Service Commission approval and Kentucky Power's construction schedule. TeraWulf acquired the approximately 308-acre Muskie site in Grayson, Kentucky, within the EastPark Industrial Park, in May 2026. Kentucky Power is developing a 345-kV substation connected to the existing 765-kV transmission network to provide the high-voltage infrastructure required for hyperscale development. TeraWulf Chairman and CEO Paul Prager said customer interest in Muskie has been strong and that securing the additional 500 MW gives the company greater flexibility in discussions with prospective customers.
The amendment does more than formalize additional capacity under the electric service agreement: it moves the second phase forward by approximately one year. The announcement also clarifies TeraWulf's earlier disclosures. Its Q2 2026 10-Q described the original arrangement as a 500 MW electric service agreement plus a separate 1,000 MW letter of agreement covering transmission infrastructure. The amended and restated electric service agreement itself has now been increased from 500 MW to 1 GW. Muskie complements TeraWulf's separate Justified Data Campus in Hawesville, Kentucky, where Anthropic has committed to approximately 401 MW of critical IT capacity under a 20-year lease, targeted to begin delivering capacity in the second half of 2027.
No tenant or AI compute customer was identified for Muskie in the October 5 announcement. The company is also evaluating whether Muskie could ultimately expand to as much as 2 GW, but that additional capacity has not been contracted and would require further utility planning, infrastructure and agreements. The immediate milestone at Muskie is not server deployment but the securing and acceleration of the utility infrastructure required to make gigawatt-scale deployment possible.