TeraWulf Inc. ( WULF ) announced two 10-year high-performance computing (HPC) colocation agreements with Fluidstack on Thursday.

TeraWulf ( WULF ) develops, owns, and operates industrial-scale data center infrastructure in the U.S., purpose-built for high-performance computing (HPC) hosting and Bitcoin (CRYPTO: BTC) mining.

Under the agreements, TeraWulf ( WULF ) will deliver more than 200 MW of critical IT load (representing approximately 250 MW of gross capacity) at its Western New York Lake Mariner data center campus. The facility is purpose-built for liquid-cooled AI workloads.

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The agreements represent approximately $3.7 billion in contracted revenue over the initial 10-year terms and include two five-year extension options that would bring the total contract revenue to approximately $8.7 billion if exercised.

Alphabet Inc’s Google ( GOOG ) will backstop $1.8 billion of Fluidstack’s lease obligations to support project-related debt financing. Google ( GOOG ) will receive warrants to acquire approximately 41 million shares of TeraWulf ( WULF ) common stock, equating to an approximately 8% pro forma equity ownership stake — aligning TeraWulf ( WULF ) with one of the most influential global AI partners.

TeraWulf ( WULF ) also plans to access the capital markets to fund a portion of the project.

Deployment Schedule

Phase one — approximately 40 MW of critical IT load — is expected online in the first half of 2026, with the full 200+ MW deployed by year-end 2026, delivering substantial near-term capacity to Fluidstack.

The expected site net operating income (NOI) margins of 85% imply around $315 million annually. Total project cost is estimated at $8 million to $10 million per MW of critical IT load.

Concurrently, TeraWulf ( WULF ) executed a long-term ground lease for approximately 183 acres at the Cayuga site in Lansing, New York.

The Cayuga Ground Lease has a term of 80 years and includes reciprocal purchase and sale options exercisable for $100 beginning in year 50.

The lease provides TeraWulf ( WULF ) with exclusive rights to develop up to 400 MW of digital infrastructure capacity, with 138 MW of low-cost, predominantly zero-carbon power expected to be ready for service in 2026. Located on the site of a former coal-fired power plant, the Cayuga property features robust existing electrical infrastructure, an industrial-scale water intake system and redundant fiber connectivity – critical components for supporting enterprise-scale computing workloads.

Cayuga’s parent company, Riesling Power, will receive consideration comprised of $95 million in the form of TeraWulf ( WULF ) common stock determined based on a 15-day trailing VWAP, and $3 million in cash.

Last week, TeraWulf ( WULF ) reported a second-quarter loss of 5 cents per share, beating the consensus for a loss of 7 cents, with sales of $47.64 million, better than the consensus of $46.08 million.

Price Action: TeraWulf ( WULF ) stock was up 32.42% at $7.24 at the time of publication on Thursday, according to Benzinga Pro.

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