Blab AI
Anthropic Secures 20-Year Lease for 400-MW AI Data Center in Kentucky
Anthropic, the San Francisco‑based artificial‑intelligence firm behind the Claude language model, has signed a 20‑year lease to operate a new data center in Hawesville, Kentucky, about an hour from Louisville. The facility, owned by TeraWulf Inc., is expected to reach an initial power capacity of 400 megawatts (MW) by the second half of 2027 and will be expanded to 401 MW in 2028.
The lease, announced in a company news release on July 6, 2026, is projected to generate roughly $19 billion in contracted revenue over its term. Paul Prager, chairman and chief executive officer of TeraWulf, said the agreement “validates our strategy and establishes a long‑duration revenue stream with one of the world’s leading AI companies.” The deal also provides a framework for future expansion and demonstrates TeraWulf’s ability to source power, develop infrastructure, and secure long‑term customer commitments.
TeraWulf, founded in 2021 by Paul Prager and Nazar Khan, originally focused on bitcoin mining. The company has shifted toward high‑performance computing (HPC) and AI infrastructure, citing the growing demand for large‑scale data centers. Hawesville’s existing power infrastructure can support up to 480 MW, giving the new facility room to grow beyond its initial 400 MW capacity.
Anthropic’s Claude models have become a key tool for enterprises seeking safe, reliable AI assistants. Since its founding in 2021 by former OpenAI members Daniela and Dario Amodei, the company has emphasized constitutional AI techniques to improve alignment and reduce misuse. The new Kentucky site will power training and inference workloads for Claude and other models, helping the company meet the energy and cooling requirements of large‑scale machine‑learning operations.
Kentucky has emerged as a favorable location for data centers due to its abundant renewable energy resources, competitive electricity rates, and supportive regulatory environment. The state’s public‑service commission has approved special tariffs for large data‑center contracts, and the region’s proximity to major transmission lines facilitates high‑capacity power delivery.
The lease aligns with broader industry trends in which AI providers are expanding their own infrastructure to reduce reliance on third‑party cloud services. By owning a dedicated facility, Anthropic can optimize power usage effectiveness (PUE), control cooling systems, and implement security measures tailored to its workloads.
TeraWulf’s move also reflects a shift in the bitcoin‑mining sector, where many operators are repurposing mining rigs for AI and HPC workloads as cryptocurrency markets fluctuate. The company’s stock rose 18 % following the lease announcement, indicating investor confidence in the AI‑infrastructure strategy.
The partnership between Anthropic and TeraWulf is part of a larger wave of AI‑centric data‑center projects across the United States. Similar deals have been announced in Indiana, Texas, and California, underscoring the sector’s rapid expansion.
While the lease is a significant milestone, the project will still require approvals from local authorities, environmental reviews, and coordination with utility providers. The timeline for full operational capacity remains tied to the completion of construction, power‑delivery upgrades, and the installation of cooling infrastructure.
In summary, Anthropic’s 20‑year lease for a 400‑MW data center in Hawesville marks a strategic expansion of its AI infrastructure footprint. The deal, backed by TeraWulf’s power and infrastructure expertise, positions both companies to meet the growing demand for large‑scale AI training and inference while leveraging Kentucky’s energy advantages.
The lease, announced in a company news release on July 6, 2026, is projected to generate roughly $19 billion in contracted revenue over its term. Paul Prager, chairman and chief executive officer of TeraWulf, said the agreement “validates our strategy and establishes a long‑duration revenue stream with one of the world’s leading AI companies.” The deal also provides a framework for future expansion and demonstrates TeraWulf’s ability to source power, develop infrastructure, and secure long‑term customer commitments.
TeraWulf, founded in 2021 by Paul Prager and Nazar Khan, originally focused on bitcoin mining. The company has shifted toward high‑performance computing (HPC) and AI infrastructure, citing the growing demand for large‑scale data centers. Hawesville’s existing power infrastructure can support up to 480 MW, giving the new facility room to grow beyond its initial 400 MW capacity.
Anthropic’s Claude models have become a key tool for enterprises seeking safe, reliable AI assistants. Since its founding in 2021 by former OpenAI members Daniela and Dario Amodei, the company has emphasized constitutional AI techniques to improve alignment and reduce misuse. The new Kentucky site will power training and inference workloads for Claude and other models, helping the company meet the energy and cooling requirements of large‑scale machine‑learning operations.
Kentucky has emerged as a favorable location for data centers due to its abundant renewable energy resources, competitive electricity rates, and supportive regulatory environment. The state’s public‑service commission has approved special tariffs for large data‑center contracts, and the region’s proximity to major transmission lines facilitates high‑capacity power delivery.
The lease aligns with broader industry trends in which AI providers are expanding their own infrastructure to reduce reliance on third‑party cloud services. By owning a dedicated facility, Anthropic can optimize power usage effectiveness (PUE), control cooling systems, and implement security measures tailored to its workloads.
TeraWulf’s move also reflects a shift in the bitcoin‑mining sector, where many operators are repurposing mining rigs for AI and HPC workloads as cryptocurrency markets fluctuate. The company’s stock rose 18 % following the lease announcement, indicating investor confidence in the AI‑infrastructure strategy.
The partnership between Anthropic and TeraWulf is part of a larger wave of AI‑centric data‑center projects across the United States. Similar deals have been announced in Indiana, Texas, and California, underscoring the sector’s rapid expansion.
While the lease is a significant milestone, the project will still require approvals from local authorities, environmental reviews, and coordination with utility providers. The timeline for full operational capacity remains tied to the completion of construction, power‑delivery upgrades, and the installation of cooling infrastructure.
In summary, Anthropic’s 20‑year lease for a 400‑MW data center in Hawesville marks a strategic expansion of its AI infrastructure footprint. The deal, backed by TeraWulf’s power and infrastructure expertise, positions both companies to meet the growing demand for large‑scale AI training and inference while leveraging Kentucky’s energy advantages.
