TeraWulf (NASDAQ: WULF) announced that Google will provide investment‑grade credit support for its $19 billion lease agreement with AI startup Anthropic at the Justified campus in Hawesville, Kentucky. The backing leverages Google’s AA+ rating from S&P Global and Aa2 from Moody’s, effectively lowering the miner’s borrowing costs for the project, according to the company’s filing.

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Credit Structure and Cost‑of‑Capital Benefits

Google’s involvement is structured as a senior unsecured debt guarantee, meaning the tech giant’s credit rating will be applied to the debt issued by TeraWulf for the lease. CFO Patrick Fleury said the arrangement “strengthens the project’s financing profile” and makes long‑term debt cheaper, a key factor for infrastructure development.

Project Scope and Timeline

The 20‑year lease, signed in July, obligates Anthropic to a base revenue of $19 billion, potentially rising to $33 billion if two five‑year extensions are exercised. The agreement covers roughly 401 megawatts of critical IT load, with the first services slated for the second half of 2027 and full capacity expected in early 2028.

Strategic Shift for TeraWulf

TeraWulf, traditionally a Bitcoin miner, has been pivoting toward high‑performance computing and AI services. High‑performance computing leases already generated about 71 % of its $44.8 million revenue this year, surpassing earnings from its remaining mining operations. The Kentucky site follows earlier AI‑related deals, including a Google‑backed lease with Fluidstack at the Lake Mariner campus.

What to Watch Next

Investors will monitor Anthropic’s ability to meet its long‑term lease commitments and the progress of construction by Fluor Enterprises, which secured an EPC contract for three data‑center buildings. Additionally, the impact of Google’s credit support on TeraWulf’s overall debt profile and future financing for similar AI‑focused projects will be closely watched.