Terawulf Signs 70 MW AI Hosting Lease to Diversify Bitcoin Mining
Bitcoin mining company TeraWulf is leasing over 70 megawatts (MW) of its data center capacity in New York to a subsidiary of UAE-based AI firm G42, supporting its growing AI operations.
TeraWulf announced on Monday that it has entered into a data center lease with G42’s U.S. subsidiary Core42 and the infrastructure will be delivered in phases between Q1 and Q3 of 2025.
The leased capacity at Terawulf’s Lake Mariner facility in Upstate New York will be customized to accommodate Core42’s GPU clusters, which will be powered by Dell’s Integrated Rack Scalable Solutions, including the Dell IR5000, featuring liquid-cooled Dell PowerEdge XE9680L GPU servers.
Core42, which is backed by a recent $1.5 billion investment from Microsoft, is the latest AI-focused tenant for TeraWulf, reflecting a growing trend of Bitcoin mining firms entering the AI computing space. This lease agreement follows the broader industry shift amid the declining hashprice in the Bitcoin network.
The lease includes two five-year renewal options, offering TeraWulf long-term revenue potential. Additionally, the agreement allows for future expansion, with the potential to increase hosting capacity by 135 MW gross, according to the company.
TeraWulf’s stock price rose by 3.6% in pre-market trading on Monday. Earlier this year, fellow Bitcoin miner Core Scientific (NASDAQ: CORZ) saw its stock rally after announcing a series of hosting contracts with AI startup CoreWeave.
Meanwhile, TeraWulf has been experiencing a decline in its Bitcoin mining output. Its realized hashrate dropped from 8.9 EH/s in August to just under 6 EH/s in November.
