TeraWulf Secures Kentucky Regulatory Approval for 482-Megawatt Power Agreement

TeraWulf Inc. shares rose Monday after Kentucky regulators approved a significant power agreement for the company's Justified data center campus.

The Kentucky Public Service Commission approved electric service of up to 482 megawatts for the site in Hancock County. The August 21 order allows Big Rivers Electric Corp. and Kenergy Corp. to implement the agreement.

TeraWulf to Cover Project Costs

Under the agreement, TeraWulf will pay market, transmission, and distribution costs related to its power usage. It will also fund customer-specific infrastructure and provide substantial credit support.

The commission said the agreement protects existing utility customers. It also determined that the rates are fair and do not give TeraWulf an unreasonable advantage.

The agreement includes additional demand charges and customer fees. These payments will provide extra revenue for Big Rivers and Kenergy.

Former Industrial Site Gets New Use

TeraWulf is developing the campus at the former Century Aluminum Hawesville facility. The closed aluminum smelter left approximately 482 megawatts of available transmission capacity.

Repurposing this infrastructure could help TeraWulf bring data centers online more efficiently. The campus will support artificial intelligence and high-performance computing workloads.

TeraWulf expects to invest approximately $4 billion to $4.5 billion in site development and the initial data hall. This estimate does not include customer spending on computing equipment and related infrastructure.

The commission also noted the project's anticipated employment, investment, and tax benefits. TeraWulf said the development could provide a model for expanding digital infrastructure while protecting utility customers.

Technical Analysis

TeraWulf's broader technical trend remains weak. The stock trades 6.8% below its 20-day simple moving average. It is also 23.4% below the 50-day average and 25.9% below the 100-day average.

Additionally, the stock remains 11.1% below the 200-day moving average. The 20-day average is also below the 50-day average, indicating sustained bearish pressure.

However, momentum may be improving. The moving average convergence divergence indicator is above its signal line, with a positive histogram. This suggests sellers may be losing control.

Traders are watching for resistance near $17.50. That level is close to the 200-day simple moving average of $17.75 and the 200-day exponential moving average of $17.64. Support is near $14.50.

TeraWulf stock has gained 76.48% over the past year. However, the stock remains well below its 52-week high of $29.84.

WULF price action: TeraWulf shares rose 1.69% on Monday, closing at $15.90.