Crypto mining and artificial intelligence data center firm TeraWulf is trying to raise $3B from debt markets to expand its data center portfolio, with Google likely providing financial backing for the transaction.

Maryland-based TeraWulf is looking to raise development funds for new AI data centers through a securitized debt offering on either the high-yield bond or leveraged loan markets. The potential transaction, first reported by Bloomberg, is being arranged by Morgan Stanley, with a deal closing as early as October.

Google, likely the major end user of the data center capacity being built in TeraWulf’s planned expansion, may backstop the debt offering, with the tech giant’s involvement reportedly intended to give the securities a higher rating.

The deal would add to a growing relationship between Google and TeraWulf, a firm that — like many crypto miners — has pivoted a significant share of its business toward providing high-performance computing for AI.

In August, the tech giant agreed to backstop $3.2B of lease obligations from AI cloud provider Fluidstack at TeraWulf’s data center campus in Lake Mariner, New York, helping the neocloud firm build computing capacity for which Google will presumably be the primary customer. In return, Google received equity in TeraWulf. Google now owns a 14% stake in the crypto miner.

Through that deal, London-based Fluidstack plans to lease 360 megawatts of capacity from TeraWulf on a 10-year agreement. TeraWulf still has to deliver that capacity — the first 40 MW is expected by mid-2026, with the remaining construction completed by the end of the year.

Google is pursuing similar deals to help Fluidstack access data center capacity with other providers as well. Last week, Google agreed to backstop $1.4B of Fluidstack’s lease obligations in a 10-year deal with crypto miner Cipher Mining. In return, Google received a 5.4% stake in Cipher.

Like TeraWulf, Cipher is also expected to turn to the securitized debt market to fund the build-out of this capacity.