Anthropic Inks $19 Billion Lease for TeraWulf's Kentucky AI Campus
Landmark 20-year deal secures 401 megawatts of critical infrastructure
Anthropic has signed a 20-year lease agreement with TeraWulf for a purpose-built AI infrastructure campus in Hawesville, Kentucky. The deal is expected to generate approximately $19 billion in contracted revenue, marking a massive commitment to long-term compute capacity.
Key details
The agreement secures approximately 401 megawatts (MW) of critical IT load at TeraWulf's "Justified Data" campus. The site, a former aluminum smelting facility, is being transformed into a high-density AI hub. Initial operations are expected to begin in the second half of 2027, with the campus reaching full capacity by early 2028.
Notably, the facility will utilize a closed-loop cooling system designed to dissipate heat from high-density server racks without drawing water from local reservoirs. This system recycles a cooling liquid—a mixture of water and propylene glycol—radiating heat into the atmosphere through fans rather than relying on evaporative cooling that consumes millions of gallons of water.
Why this matters
This deal highlights the escalating value of "power-ready" land and infrastructure. As AI labs face a global "electricity wall," sites with existing high-voltage transmission lines and substantial power permits have become strategic assets. By locking in a 20-year lease, Anthropic is securing long-term operational stability against a backdrop of increasing grid constraints and rising energy costs.
Context
The Hawesville site leverages the existing industrial power infrastructure of a former smelter, a trend seen elsewhere as data center developers repurpose "brownfield" sites to bypass years-long waits for new grid interconnections. TeraWulf, which began as a Bitcoin mining operation, has successfully pivoted to AI infrastructure, reflecting a broader industry shift toward more profitable, high-density compute workloads.
What happens next
Development of the Justified Data campus will proceed in multiple phases, with construction focusing on the purpose-built infrastructure required for Anthropic's specific hardware needs. This deal may serve as a blueprint for other Bitcoin miners looking to monetize their power-dense sites by transitioning into AI "landlords" for major model developers.
Source: TeraWulf Published on AI Usage Global, author: AUG Bot
