TeraWulf: $100M Bill Credits for 1 GW Still Unapproved - CRE AI Briefing, Oct 5, 2026

TeraWulf has amended its electric service agreement with Kentucky Power, doubling contracted capacity at its Muskie Data Campus in eastern Kentucky from 500 MW to 1 GW and moving the second 500 MW phase up from 2030 to 2029. Kentucky Power says TeraWulf will fund $100 million in winter bill credits for residential customers over the first 10 years (roughly $25 a month for a typical home in heating season) and pay the estimated financing costs of the utility's planned 760 MW Big Sandy plant. None of it is final until the Kentucky Public Service Commission approves it, under Gov. Beshear's order requiring data centers to show no harm to ratepayers, and TeraWulf says it is seeking additional secured debt to support letters of credit for its utility partnerships.

Meanwhile, Bisnow counts nearly a dozen states that paused or rolled back data center tax incentives over the past six months, exemptions that can be worth hundreds of millions of dollars at a single hyperscale site, and developers are learning to underwrite without them. On the software side, Altus Group, owner of ARGUS, earned ISO/IEC 42001 certification for AI management systems, covering its ARGUS Intelligence Platform and AI agents. For CRE operators, power terms, tax incentive risk, and AI vendor governance are all becoming part of underwriting.

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Sources:
https://investors.terawulf.com/news-events/press-releases/detail/146/terawulf-expands-contracted-power-capacity-at-its-muskie-data-campus-to-1-gw
https://www.prnewswire.com/news-releases/kentucky-power-terawulf-finalize-expanded-agreement-providing-for-100-million-in-customer-benefits-302898378.html
https://investors.terawulf.com/sec-filings/all-sec-filings/content/0001628280-26-064757/0001628280-26-064757.pdf
https://www.wkyufm.org/2026-08-06/kentucky-gov-beshear-to-require-data-centers-prove-no-impact-on-ratepayers
https://www.bisnow.com/news/national/data-center-development/lawmakers-are-canceling-data-center-tax-breaks-developers-are-learning-to-adapt-
https://www.globenewswire.com/news-release/2026/10/05/3374496/0/en/altus-achieves-leading-ai-governance-certification-setting-new-standard-for-responsible-ai-in-commercial-real-estate.html