Mining company TeraWulf has leased out 70 MW of its infrastructure for AI computing equipment on a long-term basis.
$WULF Has Big News ?? (a thread)
TeraWulf is thrilled to announce long-term data center leases with our first #AI customer, @Core42_ai (subsidiary of G42) — a prominent AI cloud and managed services provider that brings substantial financial backing and global expertise.…
— TeraWulf (@TeraWulfInc) December 23, 2024
The counterparty is Core42, a subsidiary of Group 42 Holding from Abu Dhabi.
“This announcement marks an expansion into AI-based computing, strategically complementing our leadership in bitcoin mining,” stated TeraWulf.
The allocated space at the Lake Mariner data center in upstate New York will be repurposed to house Dell PowerEdge XE9680L servers with liquid cooling. The deployment of the equipment will be completed in stages over the first three quarters of 2025.
The agreement includes an option to increase capacity for Core42 by an additional 135 MW, as well as the possibility to extend the lease twice for five years each.
“The growing demand for scalable, energy-efficient infrastructure presents tremendous opportunities. […] This partnership not only diversifies our revenue streams but also significantly enhances our long-term profit potential,” said TeraWulf CEO Paul Prager.
In October, the company sold a 25% stake in the Nautilus Cryptomine mining venture in Pennsylvania for $92 million. The proceeds were intended to develop the Lake Mariner facility and expand hosting services for AI computing.
According to the Bitcoin Policy Institute, the AI sector offers 17-25 times greater revenue per kWh compared to cryptocurrency production.