TeraWulf Secures $3B Data Center Expansion Backed by Google

TeraWulf, a U.S.-based cryptocurrency mining firm, is preparing to raise approximately $3 billion in debt financing through Morgan Stanley to expand its data center operations. The initiative includes a $1.4 billion backstop from Google, potentially bringing total funding to $3.2 billion. Chief Financial Officer Patrick Fleury confirmed the plans, noting Google's involvement could enhance the deal's credit rating.

The fundraising, slated to launch as early as October, may utilize high-yield bonds or Leveraged loans. This move capitalizes on surging demand for data infrastructure to support AI development, requiring advanced chips and reliable power sources. Negotiations remain ongoing, with terms yet to be finalized.

Google's participation follows its 14% equity stake in TeraWulf through a separate $3.7 billion colocation agreement with AI infrastructure provider Fluidstack. The tech giant has now committed $3.2 billion across both deals, signaling growing institutional interest in crypto-mining infrastructure.