Terawulf, a Bitcoin miner and data center operator established in the US, has signed a large AI hosting deal worth $ 3.7 billion with Fluidstack. The agreements cover more than 200 MW of high-quality computer capacity on the Lake Mariner campus of Terawulf. Google will backstop $ 1.8 billion in the lease obligations of Fluidstack and get a share interest of 8% in Terawulf.
Large-scale AI hosting agreements
The agreements between Terawulf and Fluidstack Span 10 years and want to deliver more than 200 MW of critical IT tax. The Lake Mariner facility is designed to support liquid-cooled AI-Deskads and a high density. Phase one of the project, a total of around 40 MW, is expected to be online in the first half of 2026. The full deployment of 200+ MW is planned by the end of 2026.
The contracts also include two five -year extension options. If exercised, the total contract value can reach $ 8.7 billion. The leasing structure is an adapted gross rental agreement with annual escalators. Terawulf expects the net operational income margins of 85%of the site, which translates to around $ 315 million a year.
The role of Google in the deal
Google stops $ 1.8 billion in Fluidstack’s lease obligations to support project financing. In exchange, Google receives Warrants for approximately 41 million shares of the ordinary shares of Terawulf, which has a share position of 8%. Terawulf concludes this regulation with one of the largest global AI partners.
Terawulf plans to gain access to the capital markets to finance part of the project. The company also received 30-day exclusivity for the CB-5 site at Lake Mariner, which could add an extra 160 MW of critical IT tax.
Leadership declarations and facility options
Paul Prager, Chief Executive Officer of Terawulf, said: “We are proud to unite world class capital and calculate partners to deliver the next generation of AI infrastructure.” Nazar Khan, Chief Technology Officer, added: “Our Lake Mariner campus has been built in a targeted way to demand AI workload with water cooling of closed-run and ultra-low-latency fiber connectivity.”
Co-founder of Fluidstack César Maklary said: “Our collaboration with Terawulf reflects our shared dedication to the provision of scalable infrastructure for AI Labs Worldwide.” With the cooperation, Fluidstack can quickly expand its high-performance calculations with the help of an adapted and scalable solution.
Terawulf project costs and advisers
The total project costs for the AI -Hosting implementation of Terawulf are estimated at $ 8 million to $ 10 million per MW of critical IT tax. Morgan Stanley acts as the only financial adviser to Terawulf for the transaction. Legal adviser is provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stutzman, Bromberg, Esserman & Plifka, PC
Terawulf operates environmentally friendly, large-scale data centers and focuses on powerful computer hosting and bitcoin-mining. The company wants to serve its own calculation needs and that of top customers. The Lake Mariner campus is now positioned as a leading Hyperscale-ready site for AI-Workloads.
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