KEY POINTS
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TeraWulf amended its Kentucky Power agreement to increase contracted capacity at the Muskie Data Campus from 500 megawatts to 1 gigawatt.
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The second 500-MW phase is targeted for 2029, while the first phase remains targeted to begin ramping in 2028.
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Kentucky Public Service Commission approval and Kentucky Power’s construction schedule remain key milestones for the planned AI campus.
TeraWulf is expanding the planned power commitment for its Muskie Data Campus in eastern Kentucky, giving the artificial intelligence and high-performance-computing project a larger utility footprint before the campus begins operating.
The company said in an Oct. 5 announcement that an amended and restated agreement with Kentucky Power increases contracted capacity from 500 megawatts (MW) to 1 gigawatt (GW).
The agreement also advances the planned delivery of the second 500-MW phase to 2029 from 2030.
What Did TeraWulf Announce About the Muskie Campus?
The announcement concerns contracted electrical capacity, not completed data center space or operating load. TeraWulf acquired the Muskie site in May 2026 for phased development as an AI and high-performance-computing campus. The company continues to evaluate additional expansion, but the 1-GW commitment is the capacity identified in the latest agreement.
The first 500-MW phase remains targeted to begin ramping in 2028. The second 500-MW phase is now planned for 2029, subject to approval by the Kentucky Public Service Commission and Kentucky Power’s construction schedule.
That language makes utility infrastructure a central part of the project timeline. A power agreement can establish a development path, but it does not mean substations, transmission improvements, buildings, cooling systems or computing equipment are complete.
The project also shows how data center developers are advancing large electrical commitments before all construction details are public. TeraWulf’s announcement does not identify a customer, disclose a building square footage, or general contractor.
Anticipated $4 to $4.5 Billion Investment
TeraWulf has not released an anticipated start date, yet, the Southern US Census Region represents 85.1% of the national total of planned data center starts before year-end, making it the largest regional concentration of near-term data center construction.
In an August 24, 2026, statement, the company said, "TeraWulf currently estimates approximately $4.0 billion to $4.5 billion of investment in site development and the initial data halls, exclusive of additional investment by customers in computing equipment and related infrastructure."
ConstructConnect Project Intelligence is tracking 65 data center projects valued at $26.1 billion with planned start dates before the end of 2026. Those projects remain in various stages of preconstruction, so a planned start date does not guarantee groundbreaking or active construction.
Planned US Data Center construction starts value by US Census Region is shown on a map from September to December 2026. These projects are still in the preconstruction phase and are not guaranteed to break ground. Image and Data: ConstructConnect
Why Does the Power Agreement Matter to Construction?
ConstructConnect economists reported that, "Power infrastructure has become an increasingly important piece of the construction economy as energy demands increase amid the rapid data center buildout." [Read the ConstructConnect Data Center Report]
The expanded TeraWulf commitment creates a larger potential construction package for utility and electrical contractors serving eastern Kentucky.
Work associated with the campus could include utility-owned infrastructure, site electrical systems, substations, transmission connections, data halls, cooling equipment and supporting civil work.
The agreement also gives estimators and suppliers a clearer project milestone to track.
The next meaningful questions are whether regulators approve the amended agreement, when Kentucky Power authorizes related construction and how the 2028 and 2029 phases are sequenced.
What Is the Construction Status of the Muskie Campus?
The project remains in preconstruction. The construction schedule depends on regulatory approval and the utility’s delivery timeline, and the company has not disclosed the campus’s final building scope or capital cost.
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