TeraWulf, Fluidstack Expand AI Campus to 360 MW with Google’s $3.2B Backing
Fluidstack has exercised its option to expand its presence at Bitcoin miner Terawulf’s Lake Mariner data center campus in Western New York, just days after announcing a 200-megawatt AI colocation deal.
Terawulf announced on Monday that the expansion, known as CB-5, will add 160 MW of critical IT load for the AI cloud platform provider and is expected to be operational in the second half of 2026.
The update builds on TeraWulf’s Aug. 14 announcement of two 10-year colocation agreements with Fluidstack covering more than 200 MW of IT load, representing $3.7 billion in contracted revenue over the initial term. At that time, Google agreed to backstop $1.8 billion of lease obligations and secured warrants equal to an 8% equity stake in Terawulf.
As part of the CB-5 lease, Google will provide an additional $1.4 billion backstop for project financing, raising its total commitment to about $3.2 billion. In return, Google will receive warrants for 32.5 million TeraWulf shares, lifting its pro forma equity stake to roughly 14%. The new lease carries the same economic terms as the previously announced contracts covering CB-3 and CB-4.
Terawulf’s shares continue to rally on the news during pre-market trading hours on Monday with double-digit gains. It surged nearly 60% on Aug 14 when the initial colocation deal was announced.
Alongside the expansion, TeraWulf also said it intends to raise $400 million through a private offering of convertible senior notes due 2031, with an option for initial purchasers to buy an additional $60 million.
Proceeds will be used to fund capped call transactions, data center development, and general corporate purposes. The notes will be senior unsecured obligations, carrying semiannual interest payments and maturing Sept. 1, 2031, unless earlier converted or redeemed.
