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Kentucky Approves Massive 482 MW Data Center Energy Deal
25 Aug
Summary
- Kentucky PSC approved 482 MW electric service for TeraWulf's campus.
- The 15-year agreement ensures TeraWulf covers all related energy costs.
- The Justified Data Campus is on a former industrial site in Hancock County.
The Kentucky Public Service Commission (PSC) has authorized electric service of up to 482 MW for TeraWulf's Justified Data Campus in Hancock County. This approval, granted on August 21, allows Big Rivers and Kenergy to proceed with the retail electric service agreement.
The initial 15-year term of the agreement includes rolling five-year extensions. TeraWulf will assume all costs related to market, transmission, delivery, and infrastructure, along with credit-support obligations for the campus.
Big Rivers will source the campus's energy and capacity through MISO, passing those costs directly to TeraWulf. TeraWulf must either prepay Big Rivers' MISO capacity obligation or provide credit support equivalent to twice its estimated highest monthly bill.
This project repurposes the former Century Aluminum Hawesville smelter site, which closed in 2022. The location offers approximately 482 MW of transmission capability, allowing TeraWulf to utilize existing infrastructure. TeraWulf anticipates an investment of $4 billion to $4.5 billion for site work and initial data halls.
Anthropic has a 20-year lease for roughly 401 MW of capacity, with initial power expected in the second half of 2027. TeraWulf is also planning a substantial debt raise to support construction for this leased campus.
