The Kentucky Public Service Commission (PSC) has approved a retail electric service agreement for TeraWulf Inc. (NASDAQ: WULF), authorizing up to 482 megawatts (MW) of power for the company’s planned Justified Data Campus in Hancock County.
The approval, issued in an order dated August 21, 2026, follows the closure of the Century Aluminum Hawesville facility, whose remaining transmission capacity will support the data center’s power needs. TeraWulf estimates total site development and initial data hall investments between $4.0 billion and $4.5 billion, with expected costs of $10 million to $12 million per MW of critical IT load, excluding customer-provided computing equipment.
The agreement requires TeraWulf to cover market, transmission, delivery, and infrastructure costs, along with credit-support obligations. Costs will be passed through directly, and the structure includes negotiated demand adders and customer charges contributing to regional utilities Big Rivers Electric Corporation and Kenergy Corp.
The PSC’s order states the agreement provides adequate protections for existing customers, allocates financial and operational risks appropriately, and establishes fair, just, and reasonable rates while ensuring reliable service. TeraWulf CEO Paul Prager highlighted the strategic reuse of industrial infrastructure, noting that power availability is a key constraint for AI infrastructure development.
The Justified Data Campus will repurpose the former aluminum smelter site, leveraging existing transmission infrastructure to scale operations efficiently.
