Anthropic inks 20-year lease with TeraWulf

Anthropic inked a 20-year lease agreement with TeraWulf to add capacity. The deal highlights how neoclouds and second-tier providers are scrambling ahead of what's expected to be Meta's cloud computing launch.

TeraWulf is one of the companies that could be most impacted by a Meta cloud move. The company said in a statement that it has inked a long-term deal with Anthropic for space at its Hawesville, Kentucky data center campus. The 20-year deal is expected to be worth about $19 billion over the lease term.

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Keep in mind that the deal with Anthropic assumes that the LLM provider will be around and much larger in 20 years. That's a long term lease considering how fast AI is developing.

TeraWulf also said it will sell its 50.1% interest in a joint venture to an investor group led by Fluidstack. TeraWulf said that it received a premium for its $450 million investment in the joint venture but didn't disclose the details. TeraWulf and Fluidstack were partners on the AI data center joint venture in Abernathy, Texas.

As for the Anthropic deal, TeraWulf will provided about 401 MW of compute to be developed in multiple stages. The initial capacity will be delivered in the second half of 2027 with the full 401 MW available by early 2028.

TeraWulf had first quarter revenue of $34 million and a net loss of $427.63 million. The company has about $3.1 billion of cash and restricted cash for its expansion and about the same amount in long-term debt.