TeraWulf, a U.S.-based digital infrastructure company, has secured two 10-year high-performance computing (HPC) colocation agreements with AI cloud platform Fluidstack, representing approximately $3.7 billion in contracted revenue. The deal, which involves Google providing a $1.8 billion financial backstop for Fluidstack's lease obligations, has sent TeraWulf's stock soaring.

Details of the Agreements

The agreements will see TeraWulf deliver more than 200 MW of critical IT load at its Lake Mariner data center campus in Western New York. This facility is purpose-built for liquid-cooled AI workloads, meeting the scale, density, and resiliency requirements for next-generation computing. The contracts include two five-year extension options, which, if exercised, would increase the total contract revenue to approximately $8.7 billion. The contracts are structured as modified gross leases with annual escalators. TeraWulf projects site Net Operating Income (NOI) margins of approximately 85%, implying annual NOI of about $315 million. Total project costs are estimated at $8-$10 million per MW of critical IT load.

Phase one of the project, delivering approximately 40 MW of critical IT load, is expected to come online in the first half of 2026, with the full 200+ MW deployed by year-end 2026. Fluidstack also obtained 30-day exclusivity on Lake Mariner's CB-5 expansion, adding a potential 160 MW of critical IT load.

Google's Involvement

Google will backstop $1.8 billion of Fluidstack's lease obligations to support project-related debt financing and will receive warrants to acquire approximately 41 million shares of TeraWulf common stock, representing about 8% pro forma equity ownership. Google's $1.8 billion backstop notably de-risks the financing structure and provides stable, long-term forecasted income for TeraWulf. Google's 8% equity stake is viewed as both a signal of third-party confidence and an opportunity for future strategic collaboration.

Strategic Shift and Financial Impact

The agreements mark a significant shift for TeraWulf towards long-term recurring revenue backed by large-scale infrastructure commitments. TeraWulf's CEO, Paul Prager, stated that this is a defining moment for the company, uniting world-class capital and compute partners to deliver the next generation of AI infrastructure powered by low-cost, predominantly zero-carbon energy.

The company expects site Net Operating Income margins of approximately 85%, implying annual NOI of about $315 million. TeraWulf plans to access capital markets to fund a portion of the project. This recovery in Q2 2025 represents a significant turnaround from the challenging first quarter, when TeraWulf reported disappointing financial results.

TeraWulf's Infrastructure and Sustainability

TeraWulf's Lake Mariner campus is designed for liquid-cooled AI workloads, featuring dual 345 kV transmission lines, closed-loop water cooling, and low-latency fiber connectivity. The Lake Mariner Data is located on the shores of Lake Ontario and utilizes 91% zero-carbon energy, primarily hydro. The campus is situated at a former coal power plant site in Western New York, repurposing existing power infrastructure to support high-tech operations.

TeraWulf is committed to using more than 90% zero-carbon energy, aiming for every kilowatt hour of energy consumed to come from a zero-carbon source. TeraWulf's Bitcoin mining operations combine operational efficiency with a commitment to sustainability by utilizing proprietary mining equipment and predominantly zero-carbon energy sources.

Stock Performance

TeraWulf's stock (NASDAQ:WULF) is experiencing a surge in interest. WULF is currently trading up at $7.76, for a 42% gain on the day, and bringing the cumulative 5 day rally to 50%. TeraWulf's stock jumped 43.38% to $7.83 after the announcement, marking one of its biggest one-day gains. Shares of TeraWulf (WULF) jumped more than 30% Thursday after the company announced two AI infrastructure deals worth $3.7 billion with Fluidstack.