Fluidstack expands TeraWulf data center lease, adding 160 MW capacity

Published 18/08/2025, 12:10
Fluidstack expands TeraWulf data center lease, adding 160 MW capacity

EASTON, Md. - AI cloud platform Fluidstack has exercised its option to expand its presence at TeraWulf Inc.’s (NASDAQ:WULF) Lake Mariner data center campus in Western New York, adding 160 megawatts of critical IT load through a new purpose-built facility designated as CB-5. TeraWulf, currently valued at $3.52 billion, has seen its stock surge 66% in the past week alone, reflecting strong market confidence in its expansion strategy.

The expansion, announced Monday, increases Fluidstack’s total contracted capacity at the site to approximately 360 MW. Operations at the new facility are expected to begin in the second half of 2026, according to a company press release. With the stock trading near its 52-week high of $9.30, InvestingPro analysis suggests the company is currently trading above its calculated Fair Value, though analysts maintain positive growth expectations with a 44% revenue increase forecast for the current year.

Google will provide an additional $1.4 billion backstop to support project-related debt financing, bringing its total backstop commitment to approximately $3.2 billion. In connection with the deal, Google will receive warrants to acquire 32.5 million shares of TeraWulf common stock, increasing its potential ownership stake to approximately 14%.

The CB-5 lease maintains the same economic terms as Fluidstack’s initial leases for the CB-3 and CB-4 facilities at the campus. TeraWulf stated that the expansion reinforces Lake Mariner’s position as one of the largest high-performance computing campuses in the United States.

With the addition of CB-5, TeraWulf’s contracted revenue reaches $6.7 billion, with potential to increase to $16 billion if lease extensions are exercised. The company noted that discussions with Fluidstack regarding additional capacity expansions are ongoing. Want deeper insights? InvestingPro subscribers have access to 20 additional ProTips and comprehensive financial analysis through our Pro Research Report, helping investors make more informed decisions about high-growth companies like TeraWulf.

The new facility will be purpose-built for high-density, liquid-cooled workloads, utilizing the site’s dual 345 kV transmission lines and sustainable water cooling infrastructure.

TeraWulf develops and operates environmentally sustainable data center infrastructure in the United States, designed for high-performance computing hosting and bitcoin mining.

In other recent news, TeraWulf Inc. reported an unexpected positive earnings per share (EPS) of $0.05 for Q2 2025, surpassing the anticipated EPS of -$0.06. This marked a significant improvement in the company’s financial health, with a surprise of 183.33%. The company also reported revenues of $47.6 million, slightly exceeding the forecasted $46.97 million. Additionally, TeraWulf announced its intention to offer $400 million in convertible senior notes due 2031 in a private placement, with an option for initial purchasers to buy up to an additional $60 million in notes.

In analyst updates, Rosenblatt raised its price target on TeraWulf to $10.50 from $6.00, maintaining a Buy rating. This adjustment follows what Rosenblatt described as a "transformational" development in TeraWulf’s relationships with Fluidstack and Google. Similarly, JMP Securities increased its price target to $13.00 from $7.00, maintaining a Market Outperform rating. This decision was influenced by a new agreement with Fluidstack, a Google-backed customer, to lease 200 MW of capacity at TeraWulf’s Lake Mariner facility.

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