Google invests $1.4 billion to expand Terawulf data center, with ownership potentially rising to 14% after exercising options

According to Zhitong Finance APP, Terawulf (WULF.US) announced on Monday that Google (GOOGL.US) has agreed to provide $1.4 billion in funding to support the expansion project of Terawulf's Lake Mariner data center park in western New York. In return, Google will receive warrants, which, if exercised, could increase its stake in Terawulf to approximately 14%.

As a result of this news, Terawulf's stock price surged in pre-market trading, rising 11% as of the time of writing.

Terawulf's tenant, the artificial intelligence cloud platform Fluidstack, has exercised its expansion option, which includes the addition of a new data center building named CB-5. This building will provide an additional 160 megawatts of critical IT load and is expected to be operational in the second half of 2026.

Google has also agreed to provide a financial guarantee for the Lake Mariner data center project, increasing the total guarantee amount to $3.2 billion. In exchange for the additional guarantee, Google will receive warrants to purchase 32.5 million shares of TeraWulf common stock.

The newly added warrants will be in addition to the warrants that Google already holds in Terawulf. If all warrants are exercised, the previous warrants will account for an 8% equity stake in this Bitcoin mining and high-performance computing operator (on a pro-rata basis).

Terawulf stated that the leasing terms for CB-5 are consistent with the economic conditions of the initial leasing terms for CB-3 and CB-4 that Fluidstack previously negotiated