TeraWulf Executes Amended Kentucky Power Agreements, Raising Muskie Contracted Capacity to 1 GW

On October 1, 2026, TeraWulf Inc.’s wholly-owned subsidiary DB Long Hunts Data LLC executed amended and restated transmission infrastructure and energy service agreements with Kentucky Power Company, an American Electric Power company, raising contracted capacity at the Muskie Data Campus in eastern Kentucky from 500 MW to 1 GW. The same agreements move planned delivery of the second 500 MW phase from 2030 to 2029, subject to Kentucky Public Service Commission approval and Kentucky Power’s construction schedule.

The first 500 MW phase remains targeted to begin ramping in 2028. TeraWulf disclosed the execution in a Form 8-K filed with a press release dated October 5, 2026.

Who this affects

• For investors: Contracted capacity at Muskie is now 1 GW, with the second 500 MW planned for 2029 rather than 2030; both the schedule shift and delivery remain subject to Kentucky PSC approval and Kentucky Power’s construction schedule, and the first 500 MW is still targeted to begin ramping in 2028.

• For counsel/compliance: The contracting party is DB Long Hunts Data LLC, not the parent. Exhibit 99.1 states development will proceed consistent with Governor Beshear’s Executive Order on Data Center Development (2026-494), and cites the Kentucky PSC’s August approval of the separate electric service agreement for the Justified Data Campus in Hawesville.

• For policymakers: The second-phase pull-forward is expressly subject to Kentucky Public Service Commission approval. The exhibit states the Muskie amendment follows an approach of coordinating utility infrastructure, providing financial protections for utility investment, and structuring the agreement to benefit existing customers.

The read

The contracted step in this filing is 500 MW to 1 GW, and the one-year move applies only to the second 500 MW. The first tranche’s 2028 ramp target is unchanged. Exhibit 99.1 treats up to 2 GW as a figure the company “continues to evaluate,” subject to additional utility planning, infrastructure, and agreements — not as contracted capacity.

The same 8-K pairs the amendment with an intent to increase the existing senior secured revolving credit facility and seek additional senior secured debt for letter-of-credit needs tied to long-term power partnerships with utilities, and states there can be no assurance additional financing will be obtained. No offtaker is named. The binding gate the filing itself states is Kentucky PSC approval plus Kentucky Power’s construction schedule; the exhibit’s only cited PSC precedent is the August Justified order in Hawesville.

What was the action?

TeraWulf disclosed under Item 8.01 that DB Long Hunts Data LLC executed the Amended & Restated KY Power Agreements with Kentucky Power Company on October 1, 2026. The agreements increase contracted power capacity at Muskie from 500 MW to 1 GW and move planned delivery of the second 500 MW phase from 2030 to 2029. A press release dated October 5, 2026 is attached as Exhibit 99.1 and incorporated by reference.

What’s the penalty / scope, and how is it set?

No penalty. The action sets contracted capacity and a delivery schedule. Scope is the Muskie Data Campus in eastern Kentucky: contracted capacity rises from 500 MW to 1 GW; the second 500 MW moves from 2030 to 2029, subject to Kentucky Public Service Commission approval and Kentucky Power’s construction schedule; the first 500 MW remains targeted to begin ramping in 2028. Exhibit 99.1 states Kentucky Power is developing a 765-kV / 345-kV substation connected to the regional transmission network to serve the site, and that TeraWulf acquired Muskie in May 2026 for phased development as an AI and high-performance computing campus.

Separately, the 8-K states the company intends to increase its existing senior secured revolving credit facility and is seeking additional senior secured debt to support letter-of-credit needs for long-term power development partnerships with utilities. The revolver upsize is subject to customary closing conditions, and the filing states there can be no assurance any additional financing will be obtained.

Who else is exposed?

Kentucky Power Company, identified as an American Electric Power company, is the counterparty. DB Long Hunts Data LLC is the signatory. The Kentucky Public Service Commission is the named approval authority for the 2029 delivery.

Exhibit 99.1 refers to prospective customers and “strong customer interest”; no customer is named. The Justified Data Campus in Hawesville is cited as a separate agreement the PSC approved in August, not as part of this amendment. No other exposed parties are specified in the record.

What happens next

The filing conditions the 2030-to-2029 move on Kentucky Public Service Commission approval and Kentucky Power’s construction schedule. The first 500 MW phase remains targeted to begin ramping in 2028; planned delivery of the second 500 MW is 2029 if those conditions are met. The revolver upsize is subject to customary closing conditions, with no assurance stated that additional financing will be obtained. Whether the PSC opens a proceeding on the amended agreements, and on what timetable, is not specified in the record.