Kentucky is set to become home to a massive new artificial intelligence data center that will power Anthropic's AI models under a deal expected to generate nearly $20 billion in revenue.
TeraWulf, a Bitcoin mining company turned AI data center developer, announced Monday that Anthropic signed a 20-year lease for a "purpose-built AI infrastructure campus" at a former industrial site that TeraWulf acquired earlier this year in Hawesville, a city of about 1,000 people.
The lease is expected to generate about $19 billion of contracted revenue over the initial term, according to TeraWulf, which also said the lease is "expected to be supported by an investment-grade credit."
"The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies," TeraWulf CEO Paul Prager said in a statement.
Prager added that the lease deal with the AI firm behind Claude "creates a framework for future expansion, and demonstrates the value of our ability to source power, develop infrastructure, and secure long-term customer commitments."
The Hawesville data center will be developed in phases. Once complete, it will have enough power capacity to support about 400 megawatts of AI computing equipment.
The campus is expected to initially provide power for AI computing during the second half of 2027 before reaching its full 401-megawatt capacity by early 2028, TeraWulf said.
The AI data center is being built on the 750-acre site of what was previously Century Aluminum's smelter, which was idled in 2022 before the site was sold to TeraWulf earlier this year.
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Natalie is a senior reporter on Business Insider's Business News team.She was previously on BI's Legal Affairs team where she covered major cases out of state and federal court, as well as bankruptcy. Her coverage often focused on stories at the intersection of law, business, politics and technology. Natalie has covered Donald Trump’s criminal and civil cases, the wave of lawsuits against the second Trump administration, the indictment and criminal trial of Sean “Diddy” Combs, the shooting death of UnitedHealthcare CEO Brian Thompson, and the legal battles facing Elon Musk and his companies. Natalie came to Business Insider in June 2021 as a breaking news reporter, focusing on the most interesting angles around the trending news of the day. Natalie largely drove BI’s coverage around the fatal “Rust” shooting involving Alec Baldwin and the disappearance and murder of Gabby Petito.Prior to joining BI, Natalie worked for the New York Post, the New York Daily News, and The Brooklyn Paper. She has an extensive background covering crime and courts. During her more than 12-year journalism career, she did a stint covering the police beat out of the headquarters for the New York Police Department. Natalie, a Brooklyn native, graduated from Brooklyn College in 2012 with a journalism degree. Popular articles
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