Google Backs TeraWulf’s $3B Debt Deal to Power AI-Driven Data Centers

TLDR

• TeraWulf secures $3B with Google backing to fuel U.S. AI data centers.
• Google ups stake in TeraWulf as $3B financing drives AI infra expansion.
• TeraWulf transforms mining hubs into AI centers with $3B boost, Google-led.
• $3B raise positions TeraWulf as key U.S. AI compute power and infra player.
• Google’s $3.2B support powers TeraWulf’s bold AI-driven data center push.

TeraWulf had announced a significant financing initiative to raise $3 billion for its data center expansion. The increase in capital, supported by Google, signals the company’s shift towards high-performance computing infrastructure. Morgan Stanley is arranging the deal, which is expected to launch in October through leveraged loans or high-yield bonds.

TeraWulf Secures Backing to Expand AI Infrastructure

TeraWulf is expanding its operations to meet rising demand for AI-capable data centers across the U.S. The company operates large-scale mining sites equipped for high energy use and scalable compute capacity. With Google’s backing, TeraWulf plans to transform these sites into AI infrastructure hubs.

Google increased its backstop commitment to TeraWulf by $1.4 billion, raising its total support to $3.2 billion. This move also increased Google’s equity stake in the company from 8% to 14%. The additional funds will help TeraWulf scale its data center footprint and upgrade its facilities.

Depending on agency assessments, the $3 billion debt raise may receive a credit rating between BB and CCC. Google’s financial backing could result in a more favorable credit rating. Talks are ongoing, and the launch timeline may shift based on market conditions and lender interest.

TeraWulf and Fluidstack Deepen Ties as AI Demand Soars

In August, AI cloud provider Fluidstack expanded its colocation deal with TeraWulf in New York. The agreement enables Fluidstack to utilize TeraWulf’s infrastructure for AI computing at scale. Google supported the deal, which is valued at $3.7 billion in contract revenue.

TeraWulf’s data centers offer high energy capacity and existing infrastructure, ideal for AI and machine learning workloads. This development places TeraWulf in a favorable position within the rapidly evolving AI and compute markets. The long-term deal highlights the company’s operational value and strategic partnerships.

As AI workloads grow, TeraWulf is emerging as a key player in supplying space and power for next-gen applications. The company’s ability to repurpose crypto infrastructure gives it a strong edge. TeraWulf’s transition supports both AI development and continued Bitcoin mining.

$400M Note Offering Enhances Capital Flexibility

TeraWulf announced a $400 million private offering of convertible senior notes due 2031. The company will use part of the proceeds to fund capped call transactions, and the rest will support data center growth and other corporate needs.

This financing allows TeraWulf to diversify its capital structure and support long-term infrastructure goals. It also reflects confidence in its hybrid approach to AI and crypto operations. As demand for compute and power grows, the firm is building the scale to support both sectors.

TeraWulf’s latest moves show a strategic alignment between digital asset infrastructure and AI development. The company continues to attract partners like Google who seek reliable access to compute power. With $3 billion in new funding on the table, TeraWulf is accelerating toward a new phase of AI-powered growth.

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