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Investing.com -- TeraWulf Inc. (NASDAQ:WULF) stock surged 20% after the digital infrastructure company announced it has secured a long-term ground lease at its Cayuga site in New York to expand its high-performance computing and AI data center capabilities.
The 80-year lease agreement covers approximately 183 acres at the Lansing, New York location and includes reciprocal purchase and sale options exercisable for $100 beginning in year 50. The deal provides TeraWulf with exclusive rights to develop up to 400 megawatts (MW) of digital infrastructure capacity, with 138 MW of predominantly zero-carbon power expected to be ready for service in 2026.
Located on the site of a former coal-fired power plant, the Cayuga property features existing electrical infrastructure, an industrial-scale water intake system, and redundant fiber connectivity that are critical for supporting enterprise-scale computing workloads.
"Our lease at Cayuga highlights TeraWulf’s strategic advantage—access to large-scale, sustainable infrastructure in attractive power markets with predominantly zero-carbon energy and robust fiber connectivity to key hubs like New York City," said Kerri Langlais, Chief Strategy Officer of TeraWulf.
The Upstate New York location benefits from a clean energy profile, with nearly 90% of the electricity generation mix coming from zero-carbon sources. The site features electricity costs averaging below $0.05 per kilowatt-hour, supporting TeraWulf’s low-cost operating model.
The transaction was negotiated and approved by a special committee of independent directors, as Cayuga is owned by TeraWulf’s Chief Executive Officer. As part of the deal, Cayuga’s parent company will receive $95 million in TeraWulf common stock and $3 million in cash.
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