• JP Morgan and Morgan Stanley leading deal
• Supports 72.5 MW of high-performance computing capacity with Core42
• NYISO approval nets 250 MW of additional capacity at Lake Mariner, NY

Terawulf is set to launch a roughly USD 300m project financing process next week to fund the buildout of 72.5 MW of high-performance computing capacity contracted with Core42, the company said during its 1Q25 earnings call.

The deal, led by JPMorgan and Morgan Stanley, is expected to be conservatively structured at approximately 70% loan-to-cost.

“We’re launching maybe Tuesday next week,” said CEO Paul Prager on the May 9 call. “It will enable us to continue to grow at the pace that we want to grow, given the real customer demand that we have.”

The planned financing will support three data center facilities at Terawulf’s Lake Mariner site in upstate New York: the Wolf Den, CB1, and CB2. Wolf Den is scheduled to begin generating revenue in the second quarter, CB1 in the third, and CB2 in the fourth. According to CFO Patrick Fleury, initial lender feedback has been positive.

Fleury said the company expects pricing for the debt to come in around SOFR plus 400 to 500 basis points. That reflects the strong credit backing of Core42—a subsidiary of UAE-based AI conglomerate G42—but also acknowledges the relative lack of name recognition compared to more visible US hyperscale operators. He noted hyperscale pricing was coming in around SOFR+ 200 basis points.

“Our customer is, in my opinion, better credit quality than CoreWeave but not as well known,” Fleury said. “So, I would expect [pricing] probably around that same range.”

The company said previously that it was fielding one-off commercial bank offers to finance the Lake Mariner project.

The company has already spent roughly USD 130m on construction for the three facilities, and while cost estimates have risen modestly—now pegged at about USD 7.2 million per critical megawatt—Terawulf maintains that the tightly coordinated design process with Core42 has resulted in a high-quality, replicable data center architecture.

The buildout is taking place at Lake Mariner, where Terawulf also announced this quarter that it has received approval from the New York Independent System Operator (NYISO) for an additional 250 MW of interconnection capacity. This brings the site’s total approved capacity to 500 MW, and the company intends to apply for another 250 MW, targeting a total of 750 MW at the site.

Terawulf sees the Lake Mariner site as a competitive advantage, citing its dual 345 kV transmission lines, renewable power access, and robust fiber and water infrastructure. The company is already in conversations with other potential tenants, and executives believe demand will accelerate once the first data halls are operational.

“There’s a lot of incoming interest, but we’re being selective,” Prager said. “Once CB1 is energized, it will be a big day for both Core42 and Terawulf. It will reflect that we were able to deliver, and it will change the entire profile of the market.”

The company is also exploring additional opportunities at its Cayuga site, which shares similar characteristics with Lake Mariner, including available transmission, industrial zoning, and utility-scale infrastructure.