Kentucky PSC approves TeraWulf’s 482 MW data center agreement
The Kentucky Public Service Commission has approved a Retail Electric Service Agreement for TeraWulf Inc.'s Justified Data Campus in Hancock County, Kentucky. The agreement authorizes up to 482 megawatts of electric service. TeraWulf will be responsible for the market, transmission, delivery, and infrastructure costs, as well as credit-support obligations related to its load.
The agreement also includes negotiated demand adders and customer charges that contribute to Big Rivers Electric Corporation and Kenergy Corp. The Commission stated that the agreement provides adequate protections for existing customers, allocates financial and operational risks appropriately, and establishes fair, just, and reasonable rates.
The project will revitalize the former Century Aluminum Hawesville facility, where approximately 482 MW of transmission capacity remains available after the aluminum smelter's closure. TeraWulf estimates investing between $4.0 billion and $4.5 billion in site development and initial data halls, with an additional $10 million to $12 million per MW of critical IT load.
Power is critical for AI infrastructure, but according to TeraWulf's CEO Paul Prager, how that power is delivered matters. The Commission found that the agreement ensures TeraWulf bears costs attributable to its service, and customer-specific terms do not provide unreasonable preference or prejudice to other customers.
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