Google Backs TeraWulf’s $3.2B Data Center Expansion Amid AI Infrastructure Boom

TeraWulf is preparing a major funding round to expand its data center operations, with Google stepping in as a key financial supporter. Chief Financial Officer Patrick Fleury told Bloomberg on Thursday that the deal could launch as early as October in either the high-yield bond market or the leveraged loan market. 

Google has pledged an additional $1.4 billion in debt financing support, bringing its total backing for TeraWulf to $3.2 billion.

The transaction is being arranged by Morgan Stanley and could receive a higher credit rating. However, Bloomberg reported that the terms remain under negotiation and there is no guarantee the offering will move forward.

Crypto Mining Firms Gain Edge in AI Race

The surge in artificial intelligence development has led to a shortage of both GPU chips and reliable power sources, making data center space more valuable than ever. Large cryptocurrency mining companies such as TeraWulf are uniquely positioned to benefit because they already control two critical resources: existing high-capacity data centers and secured electricity contracts.

In August, TeraWulf revealed a ten-year colocation lease agreement with AI infrastructure provider Fluidstack, valued at $3.7 billion in contract revenue. Google backed that agreement as well, taking a 14% equity stake in the company. With this latest financing commitment, Google’s total investment in TeraWulf now reaches $3.2 billion, signaling a strong belief in the future of crypto-to-AI infrastructure conversion.

TeraWulf’s stock (WULF) reacted sharply to Thursday’s news. Shares spiked 12% intraday to $11.72 before retreating to close down 3.7% at $10.97 in after-hours trading, according to Google Finance. The company has been on a strong run this year, with its share price up 94% since the start of 2025, and it previously jumped 80% in the days following the August announcement.

Cipher Mining Secures Similar Google-Backed Deal

TeraWulf is not the only crypto miner tapping into the AI infrastructure boom. Cipher Mining announced  a parallel agreement on Thursday with the same cloud services provider, Fluidstack. Under the deal, Cipher will supply data center capacity for Fluidstack, while Google will acquire a 5.4% stake in Cipher and guarantee $1.4 billion of the financing obligations.

These partnerships highlight a growing trend: established crypto mining firms leveraging their energy resources and facilities to meet the exploding demand for AI-ready data centers, with tech giants like Google driving the transition.