Crypto Miner TeraWulf Raising $3B To Build Data Centers Linked To Google

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.

Google logo on top of a building

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.

Continue reading this story with a free account

Log in or register
Related Topics: Google , Morgan Stanley
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Swedish Real Estate Giant To Buy Stockbridge For Up To $550M

Space Race: How The Private Sector's Orbital Aspirations Are Driving CRE On Earth

Regulators Reject Proposed Rules For Data Centers On Nation's Largest Grid

Brookdale Senior Living To Buy 30 Communities It Operates From Welltower For $290M

Brookfield-Backed Castlelake Dives Into CRE CLO Market With $1.1B Deal

JLL Taps Mark Gibson For Newly Created U.S. CEO Role

How Thermal Imaging Provides Proactive Security Measures For Data Centers

Bond Traders Shift Bets Toward Rate Hike After Latest Inflation Data

Access To Power Now The No. 1 Force Shaping U.S. Site Selection Decisions

Blackstone-Backed Data Center Firm AirTrunk Reportedly Delaying $1.5B IPO

BlackRock Invests In 3D-Printing Construction Startup Valued At $1.4B

2 Major H&R REIT Shareholders Plan To Vote To Block $5B Breakup