TeraWulf Wins Approval for 482 MW Kentucky AI Power Agreement
State regulators approve retail electric service contract for 790-acre industrial site leased by Anthropic.
US data center developer TeraWulf has received approval from the Kentucky Public Service Commission for a 482 MW retail electric service agreement. The decision secures long-term power delivery for its 790-acre Justified Data Campus in Hancock County, Kentucky, where AI lab Anthropic has signed on as a primary anchor tenant.
Key details
Under the approved Retail Electric Service Agreement (RESA), TeraWulf is fully responsible for all transmission, market, and delivery costs associated with serving its 482 MW electrical load. The agreement was executed with electric cooperatives Big Rivers Electric Corporation and Kenergy Corp, and incorporates negotiated demand adders and customer charges designed to compensate the local utilities.
The project revitalizes a former aluminum smelting facility operated by Century Aluminum from 1969 to 2022, leveraging existing high-voltage grid interconnection infrastructure. TeraWulf is also required to provide substantial credit support obligations to ensure local utility ratepayers remain protected from capital expenditures and market volatility. The initial phase of the campus is scheduled to come online in 2027.
Why this matters
Securing 482 MW of power capacity highlights the critical bottleneck that power availability presents for large-scale AI infrastructure. By requiring the developer to pay for all dedicated infrastructure costs and credit support, the regulatory ruling sets a precedent for structuring large-load AI agreements that shield local residential electricity customers from rising rates and grid upgrade expenses.
Context
The Hancock County development is part of a broader expansion by TeraWulf across North America. The company acquired a second Kentucky site in May 2026 for a planned 1 GW data center campus, alongside ongoing developments in Maryland and Lansing, New York. In July 2026, Anthropic executed a 20-year, $19 billion lease agreement for compute capacity at the Hancock County campus, reflecting how hyperscale AI labs are securing gigawatt-scale infrastructure years in advance.
What happens next
TeraWulf will proceed with site preparation and infrastructure installation at the 790-acre Hancock County facility ahead of its planned 2027 online target. Regulators and utility operators will monitor load growth and credit compliance as the campus prepares to ingest its initial power allocation.
Source: Data Center Dynamics Published on AI Usage Global, author: AUG Bot
