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TeraWulf seeks $3.5B debt for AI data center, report says

Created at 10 Jul · 10:25 AM1 source↑ Market-relevant
IN SHORT

Bitcoin miner TeraWulf is reportedly seeking $3.5 billion in debt financing led by Morgan Stanley for its Kentucky data center campus, which is leased by AI company Anthropic. The deal, expected this year, could include leveraged loans and high-yield bonds.

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Key Numbers

$3.5 billiondebt financing sought by TeraWulf
$19 billioncontracted revenue expected from Anthropic lease
20-yearlease agreement term with Anthropic
second half of 2027expected initial operations for data center
early 2028targeted full buildout for data center

Who's Involved

TeraWulf
Bitcoin miner seeking debt financing for data center
Anthropic
AI company leasing TeraWulf's data center facility
Morgan Stanley
Investment bank leading the financing effort
Patrick Fleury
TeraWulf Chief Financial Officer
Blocksbridge Consulting
Bitcoin mining advisory company

↳ Why This Matters

The significant debt raise underscores the substantial capital required for large-scale data center development driven by AI demand, and highlights the financial opportunities emerging for infrastructure providers in the AI sector. It also brings attention to TeraWulf's financial strategy and growth model amidst investor scrutiny.

Key facts

  • TeraWulf is reportedly seeking $3.5 billion in debt financing.
  • The funds are for its Kentucky data center campus.
  • AI company Anthropic has a long-term lease agreement for the facility.
  • Morgan Stanley is leading the financing effort.
  • The deal may include leveraged loans and high-yield bonds.
  • Initial operations at the data center are expected in the second half of 2027.

Bitcoin miner TeraWulf is reportedly seeking to raise $3.5 billion in debt financing, with investment bank Morgan Stanley leading the effort, to expand its Justified Data campus in Hawesville, Kentucky. This facility is leased by artificial intelligence company Anthropic under a long-term agreement, with initial operations expected in the second half of 2027 and full buildout targeted for early 2028. The deal, anticipated to launch this year, could involve leveraged loans and high-yield bonds, marking TeraWulf's first foray into the leveraged loan market. The facility is projected to generate approximately $19 billion in contracted revenue over the initial lease term with Anthropic. This move follows TeraWulf's recent 20-year lease agreement with Anthropic, highlighting the growing demand for AI computing capacity and its impact on data center funding. The company has previously engaged in multibillion-dollar financing offerings, including $1.3 billion in December 2025 and $3.2 billion in October 2025. However, TeraWulf has also faced investor scrutiny regarding insider stock sales, shareholder alignment, and the economics of its AI data center growth model, with some advisory firms questioning the company's approach.

Frequently asked questions

TeraWulf is reportedly seeking $3.5 billion in debt financing to expand its Justified Data campus in Kentucky.

The facility is leased by artificial intelligence company Anthropic under a long-term agreement.

Investment bank Morgan Stanley is reportedly leading the financing effort.

The deal could include leveraged loans and high-yield bonds.

Initial operations at the Justified Data campus are expected in the second half of 2027.

What Happens Next

01TeraWulf and Morgan Stanley are expected to launch the financing effort this year.
02Initial operations at the Kentucky data center are expected in the second half of 2027.

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How It Developed

TeraWulf is reportedly seeking $3.5 billion in debt financing.
Morgan Stanley is leading the financing effort.
The debt raise is for TeraWulf's Kentucky data center campus.
AI company Anthropic has a long-term lease agreement for the facility.
The deal is expected to launch this year and may include leveraged loans and high-yield bonds.
The Justified Data campus is slated for initial operations in the second half of 2027.
The facility is expected to generate approximately $19 billion in contracted revenue over the lease term.
Investor scrutiny has focused on TeraWulf's insider stock sales and growth model.

Sources

T1
TeraWulf eyes $3.5B debt raise for Anthropic-linked data center: ReportBitcoin miner TeraWulf is reportedly seeking $3.5 billion in debt financing led by Morgan Stanley for its Kentucky data center campus leased by AI company Anthropic.Cointelegraph

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