Anthropic has signed a 20-year lease to use a TeraWulf data center in Hawesville, Kentucky, in a deal expected to generate around $19 billion in revenue over its initial term. TeraWulf shares jumped more than 16% in premarket trading on the news.
Anthropic on Monday signed a 20-year lease to occupy a TeraWulf data center in Hawesville, Kentucky, a deal expected to generate approximately $19 billion in revenue over its initial term and sending TeraWulf shares surging more than 16% in premarket trading.
The facility, located about an hour southwest of Louisville, will have a power capacity of around 400 megawatts. First power delivery is expected in the second half of 2027.
"The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies," TeraWulf CEO Paul Prager said in a statement.
TeraWulf, originally a cryptocurrency mining company, has been pivoting toward AI data center infrastructure. Its stock has climbed more than 80% so far this year, and Monday's announcement underscores how the company's repositioning has resonated with investors.
In a separate transaction disclosed alongside the Anthropic deal, TeraWulf also sold its 50% interest in a 168-megawatt data center in Abernathy, Texas to an investor group led by Fluidstack.
The agreement arrives amid a broad recovery in semiconductor and AI infrastructure stocks on Monday. The VanEck Semiconductor ETF (SMH) rose 2.3% in early trading, partially offsetting a 3.2% decline the prior week — its second consecutive losing week. Marvell Technology gained 4.1%, while Teradyne, KLA, Lam Research, and Intel were each up more than 3%.
The broader market also opened on a positive note. S&P 500 futures gained 0.4% and Nasdaq-100 futures advanced 1.1%, reflecting continued momentum after a week in which the Dow Jones Industrial Average climbed nearly 2% and closed within striking distance of the 53,000 level. The S&P 500 and Nasdaq Composite posted gains of 1.8% and 2.1%, respectively, last week.
Analysts at Bernstein hiked their price target on ASML Holding by more than 30% to $2,300 on Monday, citing what they described as unprecedented expansion in both logic and DRAM capacity driven by artificial intelligence. ASML shares were up 4% in early trading.
Morgan Stanley analysts also raised price targets on Lam Research, Applied Materials, and KLA Corporation. Lam Research was among the top performers on the S&P 500 in premarket activity, up more than 4%, with Applied Materials and KLA each rising just under 4%.
Mark Newton, head of technical strategy at Fundstrat, noted that the rotation into financials, healthcare, and industrials — all of which closed at new weekly all-time highs last week — more than offset softness in semiconductor names. Newton expects the S&P 500 to reach 8,000 by mid-August; the index closed last week at 7,483.24.
Traders will be watching the Federal Reserve closely this week, with minutes from the June meeting — the first chaired by new Federal Reserve Chairman Kevin Warsh — due on Wednesday.
The Anthropic-TeraWulf deal signals continued appetite among frontier AI developers for dedicated, long-duration compute infrastructure, even as some investors have grown cautious about the pace of AI capital expenditure following reports that Meta Platforms may look to sell excess AI compute capacity.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
More from Marc →Even Realities Technology, a Shenzhen-based smart-glasses startup founded by a former Apple engineer, has raised $150 million in a pre-Series B round backed by Tencent and Meituan, reaching a $1 billion valuation as it targets the AI wearable market dominated by Meta Platforms.
Amazon Web Services announced that Mechanical Turk, its 21-year-old crowdsourcing marketplace, will stop accepting new customers on July 30, 2026, effectively placing the platform on life support amid declining relevance in an AI-dominated landscape.
Flatbush Zombies producer Erick the Architect discusses his surprise Apple WWDC appearance, his new disco-tinged single, and a tech life defined by offline walks, physical keyboards, and a deep regret about the Nokia N-Gage.
Written for readers who already know the basics — markets, AI, and the policy decisions that shape both.