[DigitalToday reporter Yoonseo Lee (이윤서)] Bitcoin mining company TeraWulf has acquired a data centre development site in the U.S. state of Kentucky and is speeding up its expansion into artificial intelligence (AI) and high-performance computing (HPC).

Cointelegraph, a blockchain media outlet, reported on May 26 local time that the site was designed to support more than 1 gigawatt (GW) of AI and HPC capacity over the long term.

TeraWulf laid out a plan to start by operating 500 megawatts (MW) by 2028 and secure an additional 500 MW by 2030. The site includes grid infrastructure planning and long-term power contracts. The company has made clearer its direction to expand AI and HPC hosting alongside its existing bitcoin mining-focused business.

The investment comes as HPC revenue is already growing. TeraWulf's latest quarterly revenue related to HPC rose 117 percent from a year earlier. The key asset driving the growth is the Lake Mariner facility in western New York, cited as one of North America's largest HPC campuses. The company, however, saw its quarterly loss widen due to the burden of large-scale investment in AI infrastructure.

TeraWulf has also put a funding base in place. The company announced a $3 billion financing agreement through Morgan Stanley in September last year to support data centre expansion. Google is serving as a backstop for the debt financing. That is why the market reacted to the new site acquisition as a step into actual expansion rather than a simple plan announcement.

The share price also moved immediately. TeraWulf shares rose as much as 13.6 percent early in New York trading on May 26 to near $26 per share, the highest level in about 3 weeks. CoinShares Bitcoin Mining ETF, an exchange-traded fund that tracks bitcoin mining companies, also rose 4.5 percent in intraday trading. TeraWulf has the third-largest weighting in the ETF at 10.86 percent.

The stock has also been strong since the start of the year. TeraWulf shares have risen about 120 percent in 2026. The market is focusing on the company's AI infrastructure business, rising HPC revenue and expanding data centre demand from increasing AI workloads.

The site acquisition also ties into a broader reshaping of the bitcoin mining industry. As mining profitability comes under pressure, major companies are broadening revenue sources into AI and HPC. Hut 8, Hive Digital, Mara Holdings and Iris are also pursuing similar strategies. TeraWulf said the Kentucky site can support capacity of more than 1 GW, and set a target of starting up the first 500 MW in 2028 and the remaining 500 MW in 2030.

The market is also watching how TeraWulf balances growth and profitability in its shift to AI. HPC revenue is rising quickly, but the company still bears a loss burden as it expands investment in AI infrastructure. Whether the Kentucky site can be built along with power infrastructure on schedule remains a variable that will determine future business performance.

TeraWulf $WULF adds another development site (1GW of 2028-2030 capacity) in Kentucky. I highly doubt they’d buy additional greenfield capacity in Kentucky if they weren’t very close to executing a lease for their existing 480MW project (due for 2027 energization), so would… https://t.co/ayCExpa3mI