By PAOLO CONFINO

The leading AI lab Anthropic signed a 20-year lease for a major data center in Kentucky owned by the crypto mining company turned artificial intelligence compute play TeraWulf. TeraWulf stock soared Monday, with other neocloud stocks higher.

The deal is worth an estimated $19 billion in revenue, according to TeraWulf (WULF). Anthropic will lease up to 401 megawatts of compute from Terwulf's data center in Hawesville, Kentucky, located about 75 miles southwest of Louisville. The deal will start in the second half of 2027 and will ramp up the full 401 megawatts of capacity by early 2028, according to a press release.

Despite having started out as a crypto miner, TeraWulf has since pivoted to becoming a data center lessor for AI developers. The move has paid off handsomely with its stock up about 95% in 2026, according to MarketSurge. Companies like TeraWulf realized there was a booming market for much of the digital infrastructure and data centers they used to run for their own operations. So they began to lease them out to the likes of Anthropic.

Anthropic, TeraWulf Deal Lifts Neocloud Stocks

TeraWulf stock leaped as much as 18% on Monday, before closing up 4.9% according to MarketSurge. The recent rally reverses a seven-session losing streak.

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"The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies," said TeraWulf CEO Paul Prager.

Anthropic had recently signed a similar deal with SpaceX (SPCX) to lease compute from its Colossus data center in Tennessee. The AI lab is also rumored to be in talks with the energy-efficient data center operator Iren (IREN), which might help explain why the stock is up around 13%. Iren's rally on Monday looks to snap a negative run that stretches back nine trading sessions.

The news also lifted other neocloud providers. CoreWeave (CRWV) rose 5.8%. Hut 8 (HUT), which leases compute to Anthropic and Google-parent Alphabet (GOOGL) is up 6.8%, after falling more than 20% last week. Applied Digital (APLD) and Riot Platforms (RIOT) rose 1.3% and 3.4%, respectively.

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TeraWulf also announced it would be selling its 50.1% stake in an upcoming data center project in Abernathy, Texas to an investor group led by its partner in the venture, Fluidstack, for $450 million. Originally established in 2025, the Abernathy facility is plans to develop a 168 megawatt AI data center.

"Together, these transactions position TeraWulf for its next phase of growth," Prager said. "Our strategy is centered on owning and operating critical infrastructure assets, maintaining direct relationships with our customers, and controlling the long-term evolution of our campuses. We believe this model provides the greatest opportunity to generate durable cash flows and attractive long-term returns for shareholders."

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Source: Investor's Business Daily