TeraWulf tells investors it could double the size of one of its KY data center projects
TeraWulf, a data center developer, announced plans to potentially double the power capacity of its Muskie Data Campus in Eastern Kentucky, on the border of Greenup and Boyd counties, from 1 gigawatt to 2 gigawatts. The company is also building a 500-megawatt data center in Hancock County, Western Kentucky, and requires state regulatory approval for electricity contracts. Residents have expressed concerns about rising electricity bills due to data center energy demands.
TeraWulf, a Maryland-based data center developer, informed investors on Wednesday that it is exploring the possibility of doubling the size of its Muskie Data Campus project in Eastern Kentucky. Chairman and CEO Paul Prager stated the company is "increasingly optimistic" about expanding the campus, located on the border of Greenup and Boyd counties, to as much as 2 gigawatts, which would accelerate its development timeline.
The Muskie campus, along with a separate 500-megawatt facility in Hancock County, Western Kentucky, would establish TeraWulf as the largest data center developer in the state if the expansion proceeds. Nazar Khan, TeraWulf's Chief Technology Officer, confirmed strong local support from officials in both Boyd, Greenup, and Hancock counties for the projects.
Both developments require substantial electricity, necessitating approval from state regulators for contracts with regional utilities. TeraWulf is currently negotiating with Kentucky Power for the Muskie campus's electricity supply. Kentucky Power's parent company, American Electric Power (AEP), disclosed in a quarterly report that it plans to acquire the 710-megawatt Longview Power coal plant in West Virginia, an acquisition that requires Federal Energy Regulatory Commission approval.
Despite an AEP spokeswoman, Tammy Ridout, stating that the Longview acquisition would not affect customers of Kentucky Power, Appalachian Power, or Wheeling Power, residents have voiced concerns regarding the potential impact of data centers on their already increasing electricity bills. TeraWulf, in turn, has highlighted the economic benefits, including permanent job creation and millions in tax revenues for local governments and schools.