TeraWulf, a US-listed Bitcoin mining company, plans to secure $3.5 billion in debt financing to accelerate the development of its Justified Data campus in Kentucky. This large-scale data center will primarily support artificial intelligence workloads under a long-term lease with Anthropic, an AI company that recently signed a 20-year agreement for the facility.
The financing effort, expected to launch this year, will be led by investment bank Morgan Stanley and could involve a combination of leveraged loans and high-yield bonds. This marks TeraWulf’s debut in the leveraged loan market, reflecting a shift in funding strategy motivated by rising demand for AI computing capacity.
The Kentucky campus, located in Hawesville, is slated to begin initial operations in the second half of 2027, with full buildout anticipated by early 2028. TeraWulf projects contracted revenue of approximately $19 billion over the term of the lease with Anthropic, underscoring the significant scale of the project.
This $3.5 billion debt raise follows previous capital raises that include offerings totaling $4.5 billion in 2025. Despite ongoing investor concerns related to insider stock sales and the company’s growth model, TeraWulf maintains that its primary function within the data center business is to provide power and facilities infrastructure, while customers like Anthropic handle computing equipment and technological upgrades.
Company CFO Patrick Fleury has publicly countered analyst skepticism that pointed to potentially high maintenance costs for AI data centers, explaining that TeraWulf’s long-term lease arrangements help mitigate recurring upgrade expenses traditionally linked to such facilities.