Terawulf Expands AI Infrastructure Footprint with a 2,8 GW Capacity Plan

Terawulf is steering away from its Bitcoin-mining origins toward a focused role as an AI and high-performance computing (HPC) infrastructure provider. The company aims to lift its data-center capacity to 2,8 GW and, in the process, reframe its competitive stance for hyperscale computing power. Alongside the capacity expansion, Terawulf is acquiring former industrial sites in Kentucky (480 MW) and Maryland to modernize them, and has secured financing for a 168-MW Texas joint venture with Fluidstack to support its HPC initiative. In the third quarter of 2025, the group reported revenue of 50,6 million US dollars, albeit with negative cash flow.

• Capacity target: Increase total data-center capacity to 2,8 GW.
• Site expansion: Acquire and retrofit sites in Kentucky (480 MW) and Maryland to enable modernized hosting.
• HPC project: Secured project financing for a 168-MW Texas joint venture with Fluidstack to handle key IT workloads for global partners.
• Quarterly results: Revenue of 50,6 million US dollars in Q3 2025, with negative cash flow.

Capacity leap to 2,8 GW

Market observers welcomed the accelerated push into AI-focused hosting. The emphasis is shifting away from the volatile crypto space toward longer-term hosting agreements for AI applications. To support this growth, Terawulf has taken over former industrial facilities in Kentucky and Maryland, with plans to convert them into turnkey data centers capable of serving large cloud providers.

Management targets annual lease activity in the 250?500 MW range, supported by project financing for the Texas site. The Texas location is envisioned as a hub for critical IT workloads in partnership with global clients.

Financial hurdles despite growth

Even with the aggressive expansion, Terawulf faced downside pressure in recent days. Regulators are increasing scrutiny, and competition within the data-center market remains intense. The company?s Q3 2025 balance sheet highlights the financial burden of the transformation.

On the positives, gross margins stood at 50,2 percent, but the firm carries high debt levels and profitability metrics that remain in the negative territory. The heavy capital outlays tied to building out the infrastructure have produced sizeable cash outflows, raising the need for successful project completions to drive meaningful earnings.

Looking ahead to Q4 2025 results

Terawulf is slated to report the fourth-quarter figures on 26 February. Investors will be focused on progress in converting energy assets for AI use and on initial, credible numbers for AI-related revenues beyond pilot projects. Details on the longer-term project pipeline are expected to surface at investor conferences in March.