TeraWulf Doubles Contracted Power at Its Kentucky Campus to 1 GW, and Flags the Collateral

On October 5, 2026, TeraWulf Inc. (Nasdaq: WULF) filed a Form 8-K with a press release attached. The filing says its wholly owned subsidiary, DB Long Hunts Data LLC, entered into amended and restated transmission infrastructure and energy service agreements with Kentucky Power Company, an American Electric Power company, and that the agreements were executed on October 1. According to the filing, they increase contracted power capacity at the Muskie Data Campus in eastern Kentucky from 500 megawatts to 1 gigawatt, and they move the planned delivery of the second 500 megawatt phase from 2030 to 2029, “subject to Kentucky Public Service Commission approval and Kentucky Power’s construction schedule.” The first 500 megawatt phase “remains targeted to begin ramping in 2028.” One small difference between the two records: the press release describes a single amended and restated electric service agreement, while the 8-K describes agreements, plural, covering both transmission infrastructure and energy service. The 8-K is the more specific record.

The site’s history is in TeraWulf’s May filing. That 8-K says the company bought Muskie from Industrial Equity Partners in a deal that closed effective May 22, 2026, that the site is about 285 acres of owned and controlled land, and that Kentucky Power is building a 345 kV substation connected to the existing 765 kV transmission network. The May press release places the site inside the 1,000-acre EastPark Industrial Park. In May the schedule was the second half of 2028 for the first phase and the second half of 2030 for the second; the October records say 2028 and 2029 without naming a half. The October release also quotes CEO Paul Prager saying customer interest in Muskie “has been tremendous,” and says the company continues to evaluate up to 2 gigawatts over time, subject to more utility planning, infrastructure and agreements. Those are company statements. No tenant has been named for Muskie. A second item in the same 8-K, headed “Financing Strategy Update,” says TeraWulf intends to increase its existing senior secured revolving credit facility and is seeking additional senior secured debt “to further support letter of credit needs in connection with the Company’s long-term power development partnerships with utilities,” and that there can be no assurance it will obtain the financing.

Nothing in the October records says the site got bigger. What changed on October 1 was a contract. In PSV’s read, that is the clearest recent illustration of how a data center site is valued: by contracted megawatts and the date they arrive, not by acres. A landowner, lender or buyer who underwrites the dirt and treats power as a utility hookup is looking at the wrong document. The same filing also shows the other side of that contract. A utility that builds a substation and reserves capacity for one customer wants protection if the customer does not show up, and TeraWulf told investors, two paragraphs after announcing the added capacity, that it needs more borrowing capacity to post letters of credit to utilities.

The public record shows what those protections can look like, at TeraWulf’s other Kentucky campus. In Case No. 2026-00115, the Kentucky Public Service Commission entered an order on August 21, 2026 approving the retail electric service agreement among Big Rivers Electric Corporation, Kenergy Corp. and TeraWulf’s subsidiary Justified DataPower LLC for the former Century Aluminum site in Hawesville. The order describes a maximum contract demand of 482 megawatts, an initial term of fifteen years with automatic five-year renewals, a minimum 482 megawatt take-or-pay obligation during the first six years, credit support equal to two times the estimated highest monthly bill, and a separate duty to prepay or fully collateralize each year’s capacity cost, with a standby letter of credit or surety bond as acceptable collateral. Those are the terms of a different agreement with a different utility, and the Muskie agreements were not public in the records PSV reviewed. But the policy behind them applies statewide. Governor Andy Beshear’s Executive Order 2026-494, effective August 6, requires data center developers to submit an energy plan to the Energy and Environment Cabinet and says the Public Service Commission “shall not allow a utility to increase rates paid by other ratepayers to recover costs caused by the development and operation of a data center.” TeraWulf’s release says Muskie will proceed consistent with that order. If other customers cannot carry the cost, the developer does.

The artifact is a one-page schedule of what the power contract gives and what it costs, by phase. Inputs: the executed service agreements and every amendment; the tariff they are written under; the utility commission docket for the site, including orders and the utility’s answers to staff questions; any energy plan filed under a state order; the credit agreement, with its letter of credit capacity; the construction schedule; and any lease or letter of intent that quotes a delivery date. Output: one row per phase showing megawatts, the delivery date, whose schedule and which approval that date depends on, when any minimum demand or take-or-pay obligation starts and how long it runs, the credit support formula and the form of collateral allowed, where that collateral comes from, and the date tenant rent is expected to begin. The last column is the one that matters: the months in which the site owes the utility money or collateral and has no rent.

The reviewers are the head of development and whoever runs treasury, with energy regulatory counsel, and the approval gate is that no delivery date is quoted to a tenant and no land closing is funded until that schedule is signed. An assistant is useful for the reading: pulling each obligation out of a long agreement and a longer docket, lining up what the press release says against what the filing and the commission order say, and flagging where they differ, as the May and October delivery dates do here. It should not estimate a utility bill, decide whether a condition has been met, or judge whether a commission will approve. PSV promises no entitlement, financing or leasing outcome from this.