TeraWulf Inc. is lining up roughly $3.5 billion of debt to construct a new data center campus in Kentucky, the company confirmed. The planned financing would represent the miner-turned-infrastructure developer's initial foray into the leveraged loan market and is targeted to launch this year.
Chief Financial Officer Patrick Fleury indicated that Morgan Stanley will lead the effort. The deal structure is expected to incorporate a combination of leveraged loans and high-yield bonds, building on TeraWulf's recent activity in the debt markets.
Throughout the past year the company has tapped public debt markets, selling $1.3 billion of high-yield bonds in December and $3.2 billion in October. Those transactions made TeraWulf the first bitcoin miner to access the junk bond market. The planned Kentucky financing would add a leveraged loan component to that mix.
TeraWulf has been repositioning its business away from traditional cryptocurrency mining and toward developing infrastructure for artificial intelligence workloads. As part of that strategic shift, the company signed a 20-year lease with Anthropic PBC for the Kentucky facility earlier this week. Fleury said the arrangement is expected to generate approximately $19 billion in revenue and includes two separate five-year extension options.
The campus, to be named Justified Data, is under construction in Hawesville, Kentucky, about an hour southwest of Louisville. In addition to the long-term lease for the new campus, Anthropic has also agreed to lease computer chips at two other TeraWulf data centers, a development reported last month.
Morgan Stanley led TeraWulf's previous high-yield offerings and the bank has been part of discussions about expanding into the loan market. Fleury noted that many lenders who participated in a $250 million revolving credit line earlier this year could also take part in the financing for Justified Data.
The financing plan, if executed as described, would combine leveraged loans and additional high-yield paper to fund construction of the Kentucky campus and support the company’s pivot toward AI-focused infrastructure. Details on pricing, syndication, and timing remain to be finalized as the launch of the transaction approaches.