Soaring AI Needs Propel TeraWulf's $3 Billion HPC Growth Supported by Google

TeraWulf Inc. (Nasdaq: WULF), a company shifting its focus from cryptocurrency mining to high-performance computing (HPC) hosting, has revealed plans to secure up to $3 billion in funding through debt, with support from

. The financing, which may take the form of high-yield bonds or leveraged loans, is being coordinated by Morgan Stanley and could be finalized as soon as October 2025. Credit ratings for the deal are anticipated to fall between BB and CCC, but Google’s backing could help boost the rating TeraWulf Plans $3B Debt-Financed Expansion [ 1 ]. The capital will be used to speed up the construction of data centers to address the growing need for AI infrastructure, positioning as a significant contender in the HPC industry.

This expansion reflects a broader trend in the sector, as demand for AI-driven computing resources continues to surpass available supply. TeraWulf’s collaborations with AI cloud provider Fluidstack and Google have already shown progress. In August 2025, Fluidstack increased its utilization of TeraWulf’s data centers in New York, while Google raised its backstop commitment to $3.2 billion, increasing its ownership in TeraWulf from 8% to 14% TeraWulf Plans $3B Debt-Financed Expansion [ 1 ]. At the same time, Cipher Mining, another crypto mining firm, entered a similar colocation partnership with Fluidstack and Google, highlighting the industry’s movement toward AI infrastructure.

Financial disclosures from TeraWulf reveal a two-pronged approach. Alongside the $3 billion debt plan, the company also announced a separate $400 million private placement of convertible senior notes maturing in 2031. The funds will be used for capped call transactions to reduce dilution and to support the expansion of data centers TeraWulf Launches $400 Million Convertible Notes Offering [ 3 ]. In the second quarter of 2025, TeraWulf reported a 34% year-over-year increase in revenue, reaching $47.6 million, largely due to higher

prices and increased mining output. However, expenses climbed by 59% to $22.1 million, mainly because of higher energy costs and greater network difficulty following the 2024 Bitcoin halving TeraWulf Reports Second Quarter 2025 Results [ 2 ].

Key site developments are at the heart of TeraWulf’s growth strategy. The company has secured a new 80-year lease at its Cayuga location in New York, enabling the development of up to 400 megawatts of digital infrastructure by utilizing the site’s existing utilities. By 2026, TeraWulf intends to bring online 138 megawatts of affordable, zero-carbon energy, with the potential to scale up to 400 megawatts Terawulf Inc. Announces Strategic Expansion And Financial Developments [ 4 ]. The Lake Mariner site in Western New York is also expanding, with Fluidstack’s CB-5 data center projected to contribute 160 megawatts of essential IT capacity by late 2026. Google’s $1.4 billion backstop for CB-5 brings its total commitment to $3.2 billion and increases its equity share to 14% TeraWulf Launches $400 Million Convertible Notes Offering [ 3 ].

TeraWulf’s executives highlighted a pivotal moment in the company’s financial trajectory, with revenue from HPC hosting expected to begin in the third quarter of 2025. CEO Paul Prager stated that the company’s rapid scalability—drawing 500 megawatts from the grid at Lake Mariner—gives it an advantage in securing both power and computing resources TeraWulf Reports Second Quarter 2025 Results [ 2 ]. The company’s long-term objectives include having 200 to 250 megawatts of HPC capacity operational by the end of 2026, supported by $3.7 billion in contracted revenue with Fluidstack, which could grow to $8.7 billion if extension options are exercised Terawulf Inc. Announces Strategic Expansion And Financial Developments [ 4 ].