At a glance
- Data center is contracted to Anthropic under $19bn deal
# Google Backs TeraWulf’s Kentucky Data Center with Credit Support
Google will act as a credit backstop for TeraWulf’s Justified Data Campus in Hawesville, Kentucky, a move designed to lower the cost of debt financing for the 480MW AI-focused project. The campus is contracted to AI lab Anthropic under a $19 billion, 20-year lease signed in July 2026.
Financing Structure and Credit Terms
Under the credit support agreement, Google will cover anticipated debt financing obligations should TeraWulf default on payments. The arrangement allows TeraWulf to pursue project financing at more favorable interest rates by leveraging Google’s investment-grade credit profile. Google’s senior unsecured debt carries an AA+ rating from S&P Global Ratings and an Aa2 rating from Moody’s.
TeraWulf Chairman and CEO Paul Prager said the Anthropic leases were structured from the outset to address counterparty credit, financing costs, and capital requirements. CFO Patrick Fleury emphasized that strong investment-grade credit support strengthens the project’s financing profile and supports competitive long-term debt terms.
This is not Google’s first credit backstop arrangement with TeraWulf. The hyperscaler previously served in the same capacity for TeraWulf’s joint venture with Fluidstack, though the source does not specify the project or terms of that prior agreement.
Project Scope and Site Details
The Justified Data Campus will deliver 480MW of capacity across a 790-acre site in Hancock County. The facility is being developed on a former aluminum processing site acquired from Century Aluminum, which operated at the location from 1969 to 2022. The first building is due online in 2027.
In July 2026, reports emerged that TeraWulf was seeking $3.5 billion in debt financing to support the project. The source does not confirm whether that financing has been closed or whether the Google backstop applies to that specific amount.
TeraWulf has signed a definitive engineering, procurement, and construction (EPC) agreement with Fluor covering three data center buildings at Justified. This builds on a limited notice to proceed announced in March 2026. Prager noted that Fluor’s engineering depth, procurement capabilities, and access to skilled labor allow TeraWulf to scale execution without building a global engineering and construction organization internally.
Broader Kentucky Portfolio and Market Context
Elsewhere in Kentucky, TeraWulf is developing the 1GW Muskie Data Campus. The source does not provide a timeline, capacity breakdown, or customer details for Muskie.
The Justified project reflects a broader trend in which hyperscalers and AI labs use balance-sheet strength to de-risk large-scale data center development. Anthropic’s 20-year, $19 billion lease represents a significant pre-commitment of capacity, while Google’s credit support addresses lender concerns about construction and operational risk. For operators, the structure illustrates how credit enhancement can bridge the gap between customer contracts and bankable project finance.
TeraWulf described the combined agreements with Google and Fluor as reinforcing a disciplined approach to capital deployment and a focus on delivering attractive risk-adjusted returns. The source does not disclose the size, tenor, or pricing of the anticipated debt facility, nor does it specify whether Google’s backstop is capped or full-recourse.
MegaWatt Intelligence Desk
Hyperscale & Grid Analyst. `More stories by $MegaWatt Intelligence Desk →`
