Zhidx (WeChat official account: zhidxcom)
Compiled by | Sun Xiaowen
Edited by | Cheng Qian
Zhidx reported on November 5 that last night, U.S. data center developer and operator TeraWulf announced that it had signed a credit support agreement with Google, under which Google will provide credit support for debt financing for TeraWulf’s Justified data center project.
TeraWulf disclosed that it had signed an engineering, procurement and construction agreement with U.S. engineering and construction company Fluor. Fluor will be responsible for constructing the campus’s three data center buildings, which are expected to be delivered for use in phases from late 2027 through the second quarter of 2028.
The campus will be used by the large-model unicornAnthropic. On July 6 this year, TeraWulf announced that its subsidiary Raylan Data had signed a 20-year lease with Anthropic, agreeing to provide approximately 401 megawatts of IT load capacity. During the initial lease term, the lease is expected to generate approximately $19 billion (about RMB 127.6 billion) in contract revenue.
Founded in February 2021, TeraWulf went public on Nasdaq in December of the same year through a merger with IKONICS. The company initially operated a bitcoin mining business but is now expanding its AI and high-performance computing infrastructure leasing business. It primarily develops and operates data centers with supporting facilities such as power supply and cooling, and charges customers through long-term leases.
As of the close of U.S. stock trading early this morning, TeraWulf’s share price stood at $11.70 per share (about RMB 78.57 per share), down 6.62% on the day, with a total market capitalization of approximately $5.84 billion (about RMB 39.22 billion).
Its co-founder, chairman and CEO Paul Prager and co-founder and CTO Nazar Khan had both previously worked at U.S. energy infrastructure company Beowulf Energy.
Prager is the founder of Beowulf Energy, while Khan was Beowulf Energy’s executive vice president for nearly 20 years, overseeing acquisitions and project development. According to TeraWulf’s 2021 annual report, the company’s core management team, including the two, had previously worked together for more than 15 years.
▲ Left: TeraWulf CEO Paul Prager; right: the company’s CTO Nazar Khan (image source: TeraWulf)
To support expansion, in October 2025, TeraWulf subsidiary WULF Compute issued $3.2 billion (about RMB 21.49 billion) of senior secured notes with a coupon rate of 7.75%, maturing in 2030. The proceeds will be used for construction of the Lake Mariner campus in New York State. That same month, TeraWulf also issued $1.025 billion (about RMB 6.883 billion) of zero-coupon convertible bonds due in 2032.
In April this year, TeraWulf made an additional public offering of 54.51 million common shares at $19 per share, raising gross proceeds of approximately $1.036 billion (about RMB 6.955 billion). The company said the proceeds would be used for construction of the Horseheads data center, repayment of bridge loans, acquisition of new sites and general corporate purposes.
According to TeraWulf’s financial report, in the second quarter of this year, the company generated revenue of approximately $44.77 million (approximately RMB 301 million), a year-over-year decline of approximately 6.0%, including approximately $31.93 million (approximately RMB 214 million) in high-performance computing lease revenue, accounting for approximately 71.3% of total revenue. The company reported a net loss of approximately $941 million (approximately RMB 6.318 billion) for the quarter, compared with a net loss of approximately $18.37 million in the year-ago period, with the loss expanding by approximately 50.2-fold year over year.
The Justified project requires upfront construction investment, with the funds recovered through rent. TeraWulf said that bringing in Google’s credit support was intended to improve the project’s financing terms and secure competitive long-term debt financing.
Anthropic will begin paying rent after each data hall is delivered and has two options to renew the lease for five years each. Based on the current phased delivery schedule from the end of 2027 through the second quarter of 2028, the initial lease term can continue through 2047–2048; if both renewal options are exercised, it can continue through 2057–2058.
To secure performance under the leases, on November 4, TeraWulf and its subsidiaries Raylan Data and Justified DataPower jointly signed three credit support agreements with Anthropic and Google, each corresponding to one of the three data center buildings at the Justified campus. Google’s performance support obligations under the lease for each building take effect once rent begins on the final data hall in that building.
If Anthropic defaults on its payment obligations or becomes bankrupt, Google may, after receiving notice as stipulated, pay the rent then due and assume Anthropic’s position as tenant under the agreement; under certain conditions, it may also pay the stipulated termination fee. After paying the termination fee, Google is entitled to acquire equity in Raylan.
Last year, Google had already provided credit support for other TeraWulf projects. On August 14, 2025, TeraWulf announced that it had signed two ten-year lease agreements with the AI cloud platform Fluidstack, under which it plans to provide more than 200 megawatts of IT load capacity at the Lake Mariner campus, with total initial contract revenue of approximately $3.7 billion (approximately RMB 24.848 billion).
To support project financing, Google provided credit support for $1.8 billion (approximately RMB 12.088 billion) of the lease obligations and received warrants to purchase approximately 41 million shares of TeraWulf common stock.
Conclusion: Computing power centers require upfront investment, with Google providing credit backing for financing
Although Anthropic has signed a long-term lease, TeraWulf still has to raise the funds needed for construction first and then wait for the data halls to be delivered before collecting rent. Bringing in Google’s credit support this time is intended to provide an additional guarantee of performance for future rental income and help the project secure long-term debt financing.
From the earlier Fluidstack project to this Anthropic project, Google has provided support for TeraWulf’s customer leases one after another, a move that may help secure orders for its own TPU computing capacity. For TeraWulf, securing construction loans requires both customers willing to lease the data halls on a long-term basis and lenders who believe the rent will be collected. Google’s assumption of some default risk under the agreements is the key to converting customer orders into a basis for financing.
Source: TeraWulf
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