TeraWulf is looking to raise about $3 billion to expand its data centers, with support from Google, according to CFO Patrick Fleury.
The company is weighing whether to issue the debt through the high-yield bond market or by arranging leveraged loans, Fleury told Bloomberg. Morgan Stanley is leading the potential deal, which could launch as early as October.
Credit rating agencies are still reviewing the plan, and estimates suggest the rating could fall between BB and CCC, the typical range for junk debt. However, Google’s backing may help secure a stronger grade.
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Talks are still underway, and the deal is not yet finalized.
AI Boom Fuels Demand for Data Centers
The surge in artificial intelligence has pushed demand for infrastructure far beyond current supply, leading to shortages of data center capacity, high-powered graphics chips, and electricity.
Crypto mining companies like TeraWulf, which already run large energy-intensive operations, are emerging as key partners for firms expanding into AI computing. TeraWulf has reported rising interest in its facilities. In August, AI cloud platform Fluidstack expanded its use of a TeraWulf-operated data center in New York. Around the same time, Google boosted its backstop commitment by $1.4 billion, raising the total to $3.2 billion and increasing its equity stake in TeraWulf from 8% to 14%.
Google Backs Mining Firms Expanding Into AI
Cipher Mining has also struck a colocation agreement with Fluidstack and Google. Under the deal, Cipher will provide data center capacity, while Google will guarantee $1.4 billion in obligations and acquire an equity stake. Cipher is also expected to pursue additional debt financing, mirroring TeraWulf’s strategy.
In a separate move, TeraWulf announced in August that it intends to raise $400 million through a private sale of convertible senior notes due in 2031. The company said part of the funds will be used for capped call transactions, with the remainder allocated to expanding its data centers and supporting other corporate purposes.
If finalized, this financing would rank among the largest debt raises by a crypto miner transitioning into AI infrastructure. It also underscores Google’s deepening involvement in scaling computing power to keep up with the accelerating demand from AI developers.
