TeraWulf plans $3B Google-backed debt to scale AI data centers

TeraWulf is lining up roughly $3 billion in debt financing, backed by Google, to expand U.S. data centers as demand for artificial intelligence computing outstrips existing capacity, the company’s finance chief said. The package, which Morgan Stanley is arranging, could be sold as high yield bonds or leveraged loans and may launch as early as October, finance chief Patrick Fleury said in a recent interview, though he and other officials cautioned that terms remain under negotiation and the transaction is not guaranteed.

The proposed financing would be supported by a reported $1.4 billion backstop from Google, bringing total Google support across related arrangements to about $3.2 billion and lifting the tech company’s equity stake in TeraWulf from roughly 8 percent to about 14 percent. Credit rating agencies are still reviewing the potential deal, and analysts expect a rating somewhere between BB and CCC, the typical range for junk rated debt, with the Google backstop possibly improving the outcome.

TeraWulf has already been deepening commercial ties as it shifts from pure Bitcoin mining to AI hosting. In August the company expanded a colocation agreement with Fluidstack for a...