TeraWulf and Fluidstack Launch 168 MW AI Compute Joint Venture

Bassyonni

ago 3 hours

TeraWulf and Fluidstack Launch 168 MW AI Compute Joint Venture

TeraWulf Inc., a leader in low-carbon digital infrastructure, has announced a significant joint venture with Fluidstack, a noted AI cloud platform. This collaboration, finalized on October 28, 2025, aims to establish 168 MW of high-performance computing (HPC) capacity at the Abernathy, Texas campus.

TeraWulf and Fluidstack Joint Venture Overview

The joint venture, which grants TeraWulf a 51% majority stake, marks a pivotal expansion of its HPC platform. The initiative is projected to generate approximately $9.5 billion in revenue over 25 years.

Key Agreements and Financial Backing

Project Capacity: 168 MW critical IT load
Contract Value: ~$9.5 billion over 25 years
Total Project Cost: $8-$10 million per MW

This project will support workloads for a major global AI platform focused on developing large-scale foundation models. Google is expected to back around $1.3 billion of Fluidstack’s long-term lease obligations, providing crucial support for project financing.

Development Timeline

The new facility is anticipated to be operational by the second half of 2026. Additionally, TeraWulf has secured rights to collaborate with Fluidstack on a further 168 MW data center project under similar commercial conditions.

Growth Strategy and Expansion Plans

With this agreement, TeraWulf’s HPC platform expands to over 510 MW, bolstering its growth strategy. The company aims to add an additional 250 to 500 MW of contracted capacity annually.

Leadership Insights

Paul Prager, CEO of TeraWulf, expressed enthusiasm regarding the partnership, emphasizing its role in enhancing the strategic position of both companies. Fluidstack’s Co-Founder, César Maklary, praised TeraWulf’s operational capabilities, highlighting the need for robust and sustainable infrastructure in the current market.

Conclusion

The TeraWulf and Fluidstack joint venture represents a vital step in the evolution of high-performance computing infrastructure. With strong financial backing and a clear pathway for growth, the partnership appears well-positioned to meet the increasing demands of AI and HPC markets.