TeraWulf Inc. has announced a partnership with Core42, a company owned by G42. They signed long-term data center lease agreements. As part of the agreement, TeraWulf will be required to supply over 70 megawatts (MW) of infrastructure at the Lake Mariner facility in Upstate New York. This partnership expands TeraWulf’s reach into AI-driven computing, alongside its Bitcoin mining operations.
Data Center Infrastructure for Core42
TeraWulf will supply specialised infrastructure to house Core42’s AI and cloud services. The data centre will house GPU clusters. These clusters will offer Dell Integrated Rack Scalable Solutions, including the Dell IR5000.Liquid-cooled Dell PowerEdge XE9680L GPU servers will be used in the data centre. TeraWulf anticipates the infrastructure to be operational in stages, beginning in 2025’s first quarter and ending in the third.
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Expanding into AI Driven Computing
This agreement reflects TeraWulf’s strategy to use zero-carbon energy for the digital economy. The company expands its operations into AI infrastructure. This move complements TeraWulf’s profitable Bitcoin mining operations. It positions TeraWulf as a growing player in AI-driven computing, enhancing its long-term business prospects.
Financial Stability and Scalability
TeraWulf receives a steady, high-margin revenue stream from the lease agreements. The contracts include two five-year renewal options. They also offer the potential to expand hosting capacity by 135 MW. This expansion equals 108 MW of critical IT load.
The scalability shows promising revenue growth for TeraWulf in the coming years.
Expert Advisors
TeraWulf has enlisted JP Morgan and Morgan Stanley as financial advisors. The agreement’s legal advisors are Stutzman, Bromberg, Esserman & Plifka, P.C. and Milbank LLP. These experts guide TeraWulf through this important partnership.
TeraWulf’s position in the digital infrastructure industry is solidified by the data centre lease deal with Core42.Â