TeraWulf Inc., the Easton, Maryland-based digital infrastructure developer trading on Nasdaq under the ticker WULF, disclosed on October 5, 2026, that it has signed an amended and restated electric service agreement with Kentucky Power, a subsidiary of American Electric Power (AEP).

Doubled Capacity Under Amended Electric Service Agreement

The revised contract lifts the contracted power allocation for the company's Muskie Data Campus in eastern Kentucky to 1 gigawatt, twice the 500 megawatts previously committed under the original arrangement.

The doubled allocation reflects a formal amendment to the existing service agreement rather than a new contract, and it positions Muskie among the larger power-backed data center sites under development in the region.

Second Phase Pulled Forward a Year

A key element of the amendment concerns timing. The second 500 MW block of capacity at Muskie, previously slated for delivery in 2030, will now be targeted for 2029.

That accelerated schedule remains conditional on two factors: approval by the Kentucky Public Service Commission and Kentucky Power's ability to complete the necessary construction on schedule.

Work on the campus will proceed in line with the requirements set out in Governor Beshear's Executive Order on Data Center Development (2026-494), the state framework governing how large-scale data center projects are developed in Kentucky.

Meanwhile, the first 500 MW phase of the campus is still on track to begin ramping in 2028, keeping the initial tranche of capacity on the timeline established when the site entered development.

Executive Commentary on Customer Demand

Paul Prager, TeraWulf's Chairman and Chief Executive Officer, addressed the rationale behind the expanded agreement.

He described customer interest in Muskie as tremendous and emphasized that power availability sits at the center of the company's discussions with prospective tenants.

In Prager's view, locking in the next 500 MW and pulling its planned delivery forward into 2029 affords TeraWulf greater flexibility to accommodate the deployment schedules that prospective customers are seeking.

He also noted that the amended agreement builds on the progress TeraWulf's teams have made working alongside Kentucky Power since the site was acquired.

Longer-Term Potential Beyond 1 GW

The 1 gigawatt figure now under contract is not necessarily the ceiling for the site. TeraWulf stated that it continues to assess Muskie's potential to support up to 2 GW of capacity over time.

Any expansion to that level would remain subject to additional utility planning, further infrastructure development, and subsequent agreements.

Origins of the Muskie Site

TeraWulf purchased the Muskie site in May 2026, acquiring it for phased development as a campus dedicated to artificial intelligence and high-performance computing workloads.

Supporting the electrical needs of such a facility, Kentucky Power is developing a 765-kV / 345-kV substation that will connect the campus to the regional transmission network.

That substation forms the physical backbone of the power delivery contemplated by the amended agreement, linking the campus to high-voltage transmission infrastructure capable of serving gigawatt-scale loads.

A Consistent Playbook for Kentucky Development

The Muskie amendment illustrates the development approach TeraWulf has applied to its large-scale projects in Kentucky.

The company coordinates directly with the utility on the infrastructure required to serve each campus, provides financial protections covering the utility's investment, and structures its agreements in a manner intended to benefit existing utility customers.

That approach received a regulatory endorsement in August, when the Kentucky Public Service Commission approved the separate electric service agreement covering TeraWulf's Justified Data Campus in Hawesville.

In approving that agreement, the Commission found that its terms adequately protected existing customers and that the costs and risks of serving the project were appropriately allocated.

About TeraWulf

TeraWulf develops, owns, and operates large-scale, power-backed digital infrastructure across the United States, with facilities purpose-built for high-performance computing and artificial intelligence workloads.

The company's model combines long-term control of land, power, and interconnection infrastructure with in-house expertise spanning energy markets, infrastructure development, and data center operations.

The company currently operates the Lake Mariner Data Campus in New York and is developing or pursuing additional large-scale campuses in Kentucky, New York, and Maryland.

TeraWulf also operates existing bitcoin-mining infrastructure at Lake Mariner, portions of which are being repurposed to support contracted high-performance computing development.

With the amended Kentucky Power agreement in place, Muskie joins TeraWulf's portfolio of power-backed campuses at the 1 GW contracted level, with the first phase of capacity still targeted to begin ramping in 2028 and the second phase now aimed at 2029 delivery.