The disclosure and our analysis
Evidence dates
Evidence: TeraWulf Form 8-K dated October 1, 2026 and filed October 5, 2026, with its October 5, 2026 press release; TeraWulf Form 10-Q for the quarter ended June 30, 2026, filed August 5, 2026; TeraWulf acquisition release dated May 26, 2026.
What TeraWulf disclosed
TeraWulf's wholly owned subsidiary, DB Long Hunts Data LLC, executed amended and restated transmission infrastructure and energy service agreements with Kentucky Power, an American Electric Power company, on October 1, 2026. The 8-K says the agreements increase the company's contracted power capacity at Muskie from 500 MW to 1 GW. [Source 1]
The second 500 MW phase is now planned for 2029 instead of 2030, subject to Kentucky Public Service Commission approval and Kentucky Power's construction schedule. The first 500 MW phase remains targeted to begin ramping in 2028. [Source 1]
TeraWulf says Kentucky Power is developing a 765 kV / 345 kV substation connected to the regional transmission network to serve the site. The company says it continues to evaluate the campus's potential to support up to 2 GW over time, subject to additional utility planning, infrastructure and agreements. It also says development will proceed consistent with Governor Beshear's Executive Order on Data Center Development (2026-494). [Source 2]
Chairman and CEO Paul Prager said customer interest in Muskie has been tremendous and that securing the next 500 MW gives the company greater flexibility to meet prospective customers' deployment needs. That is a company claim. Neither the 8-K nor the release names a customer or lease. [Source 2]
The site and the original power deal
TeraWulf closed the Muskie acquisition on May 22, 2026. Its 10-Q says the seller owned or held rights to about 308 acres in Grayson, Kentucky, and that TeraWulf completed the purchase of the final 144 acres in August 2026. The May release described the site as about 285 acres within the 1,000-acre EastPark Industrial Park and said it was already zoned for its intended use, with permitting underway. [Source 3] [Source 4]
The 10-Q describes the original electric service agreement as covering up to 500 MW under Kentucky Power's Industrial General Service tariff for large loads, with an initial 20-year term from the in-service date, but no earlier than October 13, 2028. Energy service was expected to start in the fourth quarter of 2028. After service starts, TeraWulf pays monthly capacity and energy charges subject to minimum monthly charges tied to contracted capacity. [Source 3]
The same filing says the electric service agreement required $310.7 million of collateral and a separate transmission letter of agreement requires up to $320.2 million more in installments through the third quarter of 2028. TeraWulf posted $360.7 million of letters of credit in July 2026 to cover the first requirement and the first $50.0 million installment. [Source 3]
One note on the filings: the 10-Q's financial statement notes describe the original agreement as up to 500 MW, while its management discussion describes 1,000 MW of contracted electric service. The October 8-K is the clearest statement: contracted capacity was 500 MW and is now 1 GW. [Source 1] [Source 3]
Acquisition economics
The 10-Q puts the Muskie price at $30.0 million in cash at closing, $50.0 million deferred to the first anniversary, and contingent consideration of up to $90.0 million at $90,000 per MW of power capacity delivered under the Kentucky Power agreement, capped at 1,000 MW, within 15 years. A further $50.0 million could be due at $100,000 per MW of capacity contracted under future data center leases, up to 500 MW above the first 1,000 MW. [Source 3]
Financing
The 8-K says TeraWulf intends to increase its senior secured revolving credit facility and is seeking additional senior secured debt to support letter of credit needs under its long-term power agreements with utilities. It says there is no assurance it will obtain the financing. [Source 1]
Buyer analysis
This is our analysis.
**This is utility service, not data center capacity.** The 1 GW is contracted electric service from Kentucky Power. It is not critical IT load, not built space and not leased capacity. IT load at full build will be lower than utility service after cooling and other overhead, and TeraWulf has not disclosed an IT load figure for Muskie.
**Timelines are 2028 and 2029 at the earliest.** Power ramps from 2028 for the first phase and 2029 for the second, if the PSC approves and Kentucky Power builds on schedule. Buyers needing capacity before then should not treat Muskie as near-term supply.
**Collateral is now a real cost of getting power.** TeraWulf posted $360.7 million of letters of credit in July for the first 500 MW and is raising debt to cover more. Developers that must post this kind of security will look for creditworthy anchor tenants and long terms. Smaller buyers should expect less flexibility on campuses built this way.
**A benchmark for powered land.** If every milestone is met, TeraWulf's cash, deferred and delivery-linked payments total $170 million for 1,000 MW of delivered utility capacity, about $170,000 per MW. That is our arithmetic on the 10-Q figures. It covers land and the power position only, before any construction, and assumes the full 1,000 MW is delivered.
**Questions to ask if you are offered space at Muskie.** Which phase and delivery date, what critical IT load per building, what redundancy level, and whether the capacity is already committed to an anchor tenant.
