AI company Anthropic signs $19 billion lease for Hancock County, Kentucky data center campus
AI company Anthropic signed a $19 billion, 20-year lease with TeraWulf Inc. for a data center campus under construction in Hancock County, Kentucky. The project, known as Justified DataPower, is expected to bring 401 megawatts of critical infrastructure online by early 2028 and has already faced community opposition through an online petition.
Artificial intelligence firm Anthropic, known for its Claude chatbot, has signed a substantial $19 billion, 20-year lease agreement to become the primary tenant at TeraWulf Inc.'s Justified DataPower data center campus in Hawesville, Hancock County, Kentucky. TeraWulf announced the agreement on July 6, highlighting that the campus, currently under construction on the site of a former Century Aluminum smelter, is projected to begin initial operations in the latter half of 2027 and reach 401 megawatts of capacity by early 2028.
The project, which TeraWulf acquired in February with an investment plan of $3 billion to $4 billion, is anticipated to create hundreds of short-term construction jobs and approximately 100 permanent positions. TeraWulf estimates significant annual tax contributions, including over $14 million in state sales taxes and $7 million in annual school taxes. Despite these economic benefits, the Hawesville development has sparked community opposition, with an online petition garnering over 1,200 signatures urging a pause on approvals until environmental and infrastructure impacts are fully disclosed and residents have a voice in the process.
TeraWulf executives stated in March that the data center would utilize a closed-loop cooling system, eliminating reliance on municipal water. Regulatory context includes Big Rivers Electric Corp.'s filing of a service agreement with the state's Public Service Commission in April to support the site while safeguarding existing consumers. Furthermore, state lawmakers expanded sales and other tax exemptions for data center projects last year, although legislation aimed at protecting ratepayers from subsidizing energy infrastructure upgrades for tech companies failed in the recent General Assembly session. TeraWulf is also developing the Muskie Data Campus in Boyd County, another hyperscale project without an announced tenant.