October 28, 2025
TeraWulf Inc., a developer, owner, and operator of vertically integrated digital asset mining and high-performance computing (HPC) infrastructure, announced on Tuesday a monumental 25-year joint venture agreement with cloud computing provider Fluidstack Ltd. The deal, valued at approximately $9.5 billion in total contracted revenue, marks a significant strategic expansion of TeraWulf's AI-focused data center capabilities.
Under the terms of the agreement, the two companies will collaborate to develop and deliver 168 megawatts (MW) of critical IT load at TeraWulf's campus in Abernathy, Texas. TeraWulf will hold a controlling 51% stake in the joint venture, which is designed to manage intensive AI workloads. The announcement propelled TeraWulf's shares up by 20% in morning trading.
The project, which carries an estimated development cost of $8 to $10 million per megawatt, is partially backed by a substantial commitment from Google. The tech giant has pledged approximately $1.3 billion to help secure project financing for Fluidstack. As part of the broader partnership, TeraWulf has also secured the right to team up exclusively with Fluidstack for up to 51% of the firm's next planned ~168 MW data center project.
Paul Prager, Chief Executive Officer of TeraWulf, emphasized the company's execution-focused strategy. "On our last conference call, I made clear that our focus was execution, execution, execution. Today’s transaction demonstrates that execution in practice," Prager stated. He added that securing over 510 MW of critical IT load in the past ten months is a "direct proof-point" of the company's growth strategy.
César Maklary, Co-Founder and President of Fluidstack, commented on the partnership, saying, "Fluidstack is proud to partner again with TeraWulf as we expand our platform to support next-generation GPU clusters for foundation model developers. TeraWulf brings exceptional operational discipline, energy expertise, and development scale at precisely the moment the market requires hardened, sustainable infrastructure."
This joint venture accelerates TeraWulf's strategic pivot from a primary focus on Bitcoin mining toward becoming a leading provider of sustainable infrastructure for the artificial intelligence and high-performance computing sectors. The move follows a recent 10-year, 60 MW hosting agreement with Core42, an AI cloud provider backed by G42, whose investors include Microsoft, Silver Lake, and Mubadala Investment Company.
According to the company's release, TeraWulf's equity contributions to the joint venture will be made in staged installments, preserving balance sheet flexibility. The company confirmed that no TeraWulf equity securities or warrants were issued as part of this transaction.
SOURCE cryptopolitan.com
