TeraWulf Raises $500M for Texas Data Center

TeraWulf has announced the launch of a $500 million private placement of convertible notes maturing in 2032 — a major strategic move aimed at advancing its next-generation data center development in Texas. The capital will also support ongoing corporate initiatives as the company accelerates its pivot into advanced computing.

Under the agreement, underwriters will have a 13-day option to purchase an additional $75 million in notes, potentially increasing total funding to $575 million.

Major U.S. Data Center Expansion

The upcoming Texas data center campus represents one of TeraWulf’s most ambitious projects to date. The facility is expected to support high-performance computing (HPC) workloads including artificial intelligence applications, signaling a continued departure from traditional cryptocurrency-only mining.

The company currently operates sustainable mining and HPC centers powered by carbon-free energy sources in New York and Pennsylvania — positioning Texas as a key third location in its national infrastructure footprint.

Following the funding announcement, TeraWulf’s stock dipped nearly 4% to $15.32, reflecting short-term investor caution amid rising industry leverage.

Turning from Crypto Mining Toward AI

The move is part of a broader transformation occurring across the digital infrastructure sector. TeraWulf has steadily redirected capital toward high-growth AI demand:

• In October 2024, it issued $350 million in convertible senior notes to expand into AI computing.
• In August 2025, it signed a 10-year contract with Fluidstack — supported by Google — to provide 250 MW of compute capacity valued at $3.7 billion.
• In September 2025, TeraWulf announced $3 billion in financing with Morgan Stanley to build out its data center portfolio.

This rapid expansion underscores increasing dependence on AI workloads as mining economics fluctuate following multiple Bitcoin halving cycles.

Industrywide Investment Race

Competitors are making similar pivots:

• CoreWeave acquired Core Scientific for $9B, creating one of the largest AI-focused data infrastructure platforms in the country.
• IREN invested $193M in Nvidia Blackwell B200 GPUs to scale its AI cloud services.
• CleanSpark shifted from “pure crypto mining” to HPC.
• Crusoe raised $1.3B to support AI infrastructure development for OpenAI.

Analysts at VanEck report that crypto miner debt has surged from $2.1B to $12.7B over the past year — a sixfold increase — as companies simultaneously chase profitable AI demand and keep mining operations afloat.

Texas has become one of the most competitive U.S. markets for AI-ready data infrastructure, with energy-rich regions offering cost-efficient power agreements and welcoming new technology investments. If completed as expected, TeraWulf’s new campus could become a major compute provider supporting both hyperscale AI and enterprise-level training environments.

Originally reported by Forklog.