TeraWulf (Nasdaq: WULF), the Nasdaq-listed company best known for Bitcoin mining, has secured Google's backing for its largest artificial intelligence bet. Google has put in place a backstop guarantee totaling approximately $3.2 billion for Fluidstack's long-term lease obligations at TeraWulf's Lake Mariner campus in Somerset, New York.

Google is also taking a stake in the company itself. The search giant has acquired warrants that give it approximately 14% equity ownership in TeraWulf, equivalent to roughly 73.5 million shares.

How the Google Deal Is Structured

Google is not the tenant at Lake Mariner. Fluidstack is the party leasing the space, and Google is guaranteeing that Fluidstack will meet its lease obligations. Google's initial commitment in 2025 stood at $1.8 billion; the current figure sits at approximately $3.2 billion. In practical terms, the guarantee puts Google's balance sheet behind Fluidstack's obligations — an arrangement that has become increasingly common as AI developers compete for scarce powered capacity.

Fluidstack is contracting for approximately 360 MW of critical IT load at Lake Mariner under 10-year contracts. That capacity comes primarily from three buildings on the campus, designated CB-3, CB-4, and CB-5. Energization is scheduled in phases across the second half of 2026 and into 2027. An additional 336 MW is currently under construction and slated to come online within that same window, running from the second half of 2026 through early 2027.

Inside Lake Mariner

Lake Mariner currently operates at 102 MW of capacity. TeraWulf plans to expand the site to up to 500 MW, with the potential to reach 750 MW as demand increases.

The campus sits on the grounds of a former coal plant, meaning high-voltage grid connections already exist on the property. Specifically, the site features dual 345 kV electrical lines, allowing TeraWulf to accelerate its AI and high-performance computing (HPC) rollout rather than waiting for new infrastructure to be built. Legacy power sites like this have drawn attention across the data center industry because new high-voltage interconnections can take years to permit and build. TeraWulf projects initial construction costs of $8 million to $10 million per IT megawatt.

There is also an ownership detail worth noting: Somerset Operating Company, led by TeraWulf CEO Paul Prager, owns the land beneath the Lake Mariner campus.

From Bitcoin Mining to AI Landlord

The overlap between the two businesses comes down to power: Bitcoin mining and AI computing both run on large blocks of reliable electricity, and the underlying site infrastructure — substations, cooling, and grid interconnects — is far more transferable than the compute hardware itself.

Beyond Lake Mariner, TeraWulf holds a separate 20-year lease agreement with Anthropic at its Justified Data campus in Kentucky.

A recent fire at the Lake Mariner property has raised accountability questions among TeraWulf, Fluidstack, and Google, particularly concerning operations and safety at the site.

What It Means for TeraWulf and AI Infrastructure

The $3.2 billion backstop from Google addresses a key risk inherent in any long-term lease: the possibility that the tenant cannot pay. Through warrants for roughly 14% of the company, Google also holds a direct interest in TeraWulf's success; if exercised, approximately 73.5 million new shares would come into play.

The bulk of the contracted capacity depends on the phased energization timeline holding through the second half of 2026 and into 2027, as well as on the $8 million to $10 million per-megawatt construction cost estimates staying within range. How the accountability questions around the recent fire are settled among TeraWulf, Fluidstack, and Google remains one of the open items to watch as the campus buildout proceeds.

Source: CryptoBriefing