TeraWulf, a digital infrastructure company, saw its stock rise sharply following an announcement that Google will significantly increase its financial commitment, bringing its total backstop to approximately $3.2 billion. This additional funding supports a major expansion of TeraWulf’s Lake Mariner data center campus in Western New York to meet growing demand for AI computing.
The new agreement, announced on Monday, provides an incremental $1.4 billion backstop from Google to support TeraWulf’s project-related debt financing. In exchange, Google will receive warrants to purchase 32.5 million shares of TeraWulf, which would raise its total pro forma equity stake to roughly 14%. This marks a substantial increase from the approximately 8% stake that was part of the initial $1.8 billion backstop agreement announced earlier in the month. The backstop is specifically tied to lease obligations from AI cloud platform Fluidstack.
The expansion is a direct result of Fluidstack exercising an option to expand its presence at the Lake Mariner campus, which will include a new purpose-built data center. This new facility will provide an additional 160 megawatts of critical IT load, with operations expected to begin in the second half of 2026. The total contracted capacity for Fluidstack at the campus will increase to approximately 360 megawatts. Alongside this, TeraWulf also announced a private offering of $400 million in convertible senior notes to help fund the data center expansion.