TeraWulf (WULF) gained 13% during trading following the company's announcement of a major AI and high-performance computing facility in Kentucky. According to reports from CoinDesk, the company acquired a hyperscale development site capable of supporting more than 1 gigawatt of AI and HPC infrastructure over time. The facility, named the Muskie Data Campus, is expected to deliver an initial 500 megawatts starting in the second half of 2028, with another 500 megawatts targeted by 2030. The acquisition establishes the Muskie Data Campus, which TeraWulf said is expected to support more than one gigawatt of data centre capacity over time. The company acquired the site from Industrial Equity Partners.
The Kentucky project represents TeraWulf's strategic pivot from traditional bitcoin mining to AI infrastructure development. As reported, the company stated that the Kentucky project underscores how access to electricity and transmission infrastructure has become one of the key battlegrounds in the AI boom. CEO Prager emphasized that "the defining constraint in this market is no longer computing hardware. It is power, transmission infrastructure, and execution certainty." The company cited power and transmission infrastructure as the new bottleneck in the AI boom, highlighting how the market dynamics have shifted from traditional computing hardware limitations to infrastructure constraints. The facility is located within the 1,000-acre EastPark Industrial Park and includes approximately 285 acres of owned and controlled land.
The Muskie Data Campus benefits from robust power infrastructure designed for large-scale AI and HPC demand. Kentucky Power, an AEP company, is currently constructing a 345-kilovolt substation connected to an existing 765-kilovolt transmission network. The infrastructure is designed to provide redundant utility-scale power capacity capable of supporting the full 1GW-plus campus. Regional economic development officials reportedly described the project as one of the most significant economic development opportunities for northeastern Kentucky in decades. The site is already appropriately zoned for development, while permitting work is underway and only limited preparation work is needed before construction of the data centre facilities begins.
The positive market reaction extended beyond TeraWulf, with former bitcoin miners increasingly repositioning themselves as data center and AI infrastructure operators benefiting from the AI boom. According to reports, Hut 8 (HUT) climbed 7%, while Keel Infrastructure (KEEL), formerly known as Bitfarms, rose 6.5%. Other notable gains included IREN (IREN) gaining nearly 5%, and Cipher Mining (CIFR) advancing 5.5%. The sector has become one of the hottest corners of crypto-linked equities as investors bet on the massive power needs of AI models creating lucrative long-term business opportunities beyond token mining.
