Search
IDCNOVA

Kentucky Regulators Approve 482 MW Power Deal for TeraWulf's AI Data Center Campus

By: IDCNOVARegion: Europe
Kentucky utility regulators have approved a power supply agreement that will deliver up to 482 megawatts of electricity to TeraWulf's Justified Data Campus, a major step forward for the company's planned artificial intelligence infrastructure project at a repurposed industrial site in the state.

The Kentucky Public Service Commission issued its order on August 21, authorizing Big Rivers Electric Corp. and Kenergy Corp. to implement the retail electric service agreement with TeraWulf, the company confirmed in a statement. The commission determined that the contract adequately safeguards existing utility customers, with all market, delivery, and infrastructure costs borne by TeraWulf, effectively shielding ratepayers from project-related financial and operational risks.

The regulatory approval underpins a 20-year lease agreement TeraWulf previously signed with Anthropic PBC, covering approximately 401 MW of critical IT capacity. The lease is expected to generate roughly $19 billion in revenue over its initial term, with deliveries slated to begin in late 2027 and reach full capacity in early 2028, according to TeraWulf's filing with the U.S. Securities and Exchange Commission.

The distinction between the 482 MW total electric service capacity and Anthropic's 401 MW allocation reflects the campus's overall power needs: while the 401 MW directly powers computing equipment, the remaining capacity supports cooling systems, power conversion, and other data center infrastructure essential to high-density AI workloads.

The project repurposes the former Century Aluminum Hawesville site, leveraging its existing transmission infrastructure to accelerate development. TeraWulf estimates the initial phase of the campus will require between $4.0 billion and $4.5 billion in total investment, underscoring the capital intensity of modern AI data center development.

The approval marks a notable example of how regulated utility frameworks can be adapted to support large-scale AI infrastructure projects. By assigning cost and operational risks to the developer rather than ratepayers, the commission's decision could serve as a model for other jurisdictions weighing similar power agreements for data center developments, particularly as demand for AI compute capacity continues to strain regional electricity grids.