TeraWulf Secures $3 Billion for Data Center Expansion with Google Support

According to Cointelegraph, crypto mining company TeraWulf is set to raise approximately $3 billion through Morgan Stanley to develop data centers, with significant backing from tech giant Google. The funding round aims to enhance TeraWulf's data center infrastructure, as confirmed by the company's finance chief, Patrick Fleury, in a statement to Bloomberg. The deal, which could be launched as early as October, involves high-yield bond or leveraged loan markets. Google's commitment to support the debt financing adds an additional $1.4 billion, raising the total investment to $3.2 billion. This backing from Google may potentially improve the credit rating of the Morgan Stanley transaction, although the terms are still under negotiation, and there is no certainty that the deal will proceed, as reported by Bloomberg. The surge in artificial intelligence has led to significant shortages in data center space, GPU chips, and reliable electricity access. Large crypto mining companies like TeraWulf are strategically positioned to benefit from this trend due to their existing data center infrastructure and secured power capacity. In August, TeraWulf announced a ten-year colocation lease agreement with Fluidstack, an AI infrastructure provider. This deal, valued at $3.7 billion in contract revenue, is also backed by Google, which acquired a 14% stake in TeraWulf. Google's total commitment across both deals amounts to $3.2 billion, indicating a strong long-term investment in the transition from crypto to AI infrastructure. Following the announcement, TeraWulf's stock (WULF) experienced a 12% spike on Thursday, reaching an intraday high of $11.72 before closing down 3.7% at $10.97 in after-hours trading, according to Google Finance. The company's shares had previously surged by 80% after the initial announcement in August, marking a solid year with a 94% increase in share prices since the beginning of 2025. In a similar development, Cipher Mining announced a partnership with Fluidstack, backed by Google, which acquired a 5.4% stake in the company. Cipher will provide data-center capacity for Fluidstack under a colocation agreement, with Google supporting $1.4 billion of the obligations. This move highlights the growing trend of tech giants investing in AI and crypto infrastructure.