TeraWulf CEO: ‘Not All Megawatts Are Created Equally’ in AI Race
TeraWulf says its $19 billion AI hosting agreement with Anthropic underscores its transformation from a Bitcoin miner into an AI infrastructure company.
By AI Boost|Edited by Jennifer Sanasie
Jul 13, 2026, 7:43 p.m.
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Latest developments: CEO Paul Prager said the 20-year lease reflects surging demand for AI computing and validates TeraWulf’s strategy of owning power, land and operations.
- Prager said the Kentucky project won Anthropic through a competitive bidding process centered on access to grid power and long-term infrastructure.
- The contract is valued at roughly $19 billion over its life, exceeding TeraWulf’s current market capitalization, according to the interview.
- Prager said TeraWulf already works with Anthropic and Google at its Lake Mariner campus in New York, giving the companies an established relationship.
- Prager was interviewed by Jennifer Sanasie on CoinDesk’s Public Keys at the New York Stock Exchange.
What this means: TeraWulf is shedding non-core assets to focus capital on AI data centers it fully controls.
- Prager said the company’s sale of its interest in the Abernathy project reflects a disciplined capital allocation strategy rather than a change in AI ambitions.
- He said TeraWulf earned a strong return on the sale and plans to reinvest the proceeds into wholly owned AI infrastructure projects, including additional sites in eastern Kentucky.
- Prager said owning the site, power supply and operations gives TeraWulf greater control over customer relationships and long-term returns.
The context: Building AI data centers remains a multi-year effort with labor emerging as a key execution challenge.
- Prager said the Kentucky facility is expected to come online beginning in 2028 and that TeraWulf has hired Fluor to help construct the project.
- He said securing skilled labor and contractors is a bigger challenge than equipment procurement as hyperscale AI facilities become increasingly specialized.
- Prager said proximity to reliable power remains the most important requirement for AI customers.
Reading between the lines: TeraWulf says Bitcoin mining is no longer part of its long-term strategy.
- Prager said the company originally entered Bitcoin mining because it already owned power assets and mining provided a flexible electricity customer.
- He said Bitcoin’s commodity-driven revenue model did not provide the predictable, long-term cash flows the company prefers.
- “We’re not involved in Bitcoin,” Prager said, describing AI infrastructure as a more natural fit for TeraWulf’s business.
Worth watching: Prager argued the AI infrastructure boom is constrained by power quality rather than available land.
- He said the U.S. faces a shortage of electricity and warned investors that “not all megawatts are created equally.”
- Prager said successful AI campuses require reliable generation, redundant transmission, favorable regulation and strong community relationships.
- He added that TeraWulf focuses on redeveloping former industrial sites and, where needed, adding new power generation to support both AI facilities and the broader electric grid.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
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CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
9 hours ago
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
Why it matters:
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.