TeraWulf enters $19 billion lease agreement to build data center for Anthropic
TeraWulf and AI giant Anthropic have entered into a $19 billion, 20-year lease agreement for a new 401MW data center in Hancock County, Kentucky. Local officials and residents have raised concerns regarding power and water usage, as well as noise impacts. The Kentucky Public Service Commission is currently reviewing the power agreement for the project.
Artificial intelligence company Anthropic has signed a 20-year lease agreement with TeraWulf, a digital asset mining company, for a planned 401-megawatt data center at the former Century Aluminum site in Hancock County, Kentucky. The lease agreement is projected to generate approximately $19 billion in revenue for TeraWulf over its initial term, with operations expected to commence in the second half of 2027.
Hancock County Judge-Executive Johnny "Chic" Roberts confirmed the county is investigating the project, specifically questioning its potential impact on power and water usage, and noise levels. TeraWulf has committed to conducting a noise study and asserts the facility will use less water than the previous aluminum plant. The Kentucky Public Service Commission is reviewing the power agreement between TeraWulf and Big Rivers Electric Corporation, which plans to source power from the Midcontinent Independent System Operator (MISO) market, with costs passed directly to TeraWulf.
While the project promises 100 permanent, high-paying jobs, local officials like Mike Baker, director of the Hancock County Industrial Foundation, noted this is fewer than the 600 employees at the former Century Aluminum plant. Officials are working to understand the full implications of the significant investment for the community.