TeraWulf secures 80-year lease for 400 MW data center expansion

Published 14/08/2025, 12:14
TeraWulf secures 80-year lease for 400 MW data center expansion

NEW YORK - TeraWulf Inc. (NASDAQ:WULF), a digital infrastructure company with a market capitalization of $2.14 billion and showing strong momentum with a 10.5% return last week, has executed an 80-year ground lease for approximately 183 acres at the former coal-fired power plant site in Lansing, New York, the company announced Thursday. According to InvestingPro data, the company is currently experiencing significant growth potential, with analysts forecasting 47% revenue growth this year.

The lease with Cayuga Operating Company provides TeraWulf with rights to develop up to 400 MW of digital infrastructure capacity, with an initial 138 MW expected to be operational in the second half of 2026. While the company shows promising expansion plans, InvestingPro analysis indicates the company is currently burning through cash rapidly, with a negative free cash flow yield - a crucial metric for investors to monitor. InvestingPro subscribers have access to 15+ additional key insights about TeraWulf’s financial health and growth prospects.

The Cayuga site features existing electrical infrastructure, an industrial-scale water intake system, and redundant fiber connectivity to support enterprise-scale computing workloads. Located in Upstate New York, the facility will utilize a regional electricity generation mix that is nearly 90% zero-carbon.

"With 138 MW expected to come online in the second half of 2026 and scalable capacity up to 400 MW, Cayuga further reinforces our position as a destination of choice for enterprise and hyperscale customers," said Kerri Langlais, Chief Strategy Officer of TeraWulf.

The lease includes reciprocal purchase and sale options exercisable for $100 beginning in year 50. Electricity costs at the site average below $0.05 per kilowatt-hour, according to the company.

As part of the transaction, Cayuga’s parent company Riesling Power will receive $95 million in TeraWulf common stock and $3 million in cash. The transaction was negotiated and approved by a special committee of independent directors, as Cayuga is owned by TeraWulf’s Chief Executive Officer.

An approximately 67 MW solar installation is planned for the site, and an 800 MWh battery energy storage system is in advanced development on adjacent parcels.

The announcement was made in a company press release.

In other recent news, TeraWulf Inc. reported second-quarter earnings that surpassed analyst expectations, with adjusted earnings per share reaching $0.05. This performance was significantly above the consensus estimate of -$0.06. The company’s revenue for the quarter was $47.6 million, slightly exceeding the expected $46.97 million and marking a 34% increase from the $35.6 million reported in the same quarter last year. Additionally, TeraWulf announced two major 10-year colocation agreements with Fluidstack, valued at approximately $3.7 billion in contracted revenue. These agreements will involve delivering over 200 megawatts of critical IT load at the Lake Mariner data center in Western New York. The contracts also include options for two five-year extensions, potentially increasing total revenue to $8.7 billion. These developments highlight TeraWulf’s expansion in both financial performance and strategic partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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