Why TeraWulf, IREN, and Other Data Center Stocks Jumped Today
Key Points
Anthropic secured 401 megawatts of computing capacity from TeraWulf.
IREN could also be in store for a massive AI payday.
Shares of TeraWulf (NASDAQ: WULF) rose on Monday after the digital infrastructure developer struck a blockbuster deal with leading artificial intelligence (AI) model maker Anthropic.
IREN's (NASDAQ: IREN) shares were likewise up sharply, on reports that the data center operator could also be about to sign a lucrative computing capacity agreement with the AI giant.
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Partnering with an AI titan
TeraWulf signed a 20-year lease with Anthropic at its Justified Data campus in Kentucky. The project is projected to go online in the second half of 2027 and ramp up to 401 megawatts of computing power by early 2028. The deal is forecast to produce a whopping $19 billion in contracted revenue.
"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 press release.
TeraWulf also agreed to sell its 50.1% stake in its Abernathy Joint Venture to an investor group led by its development partner Fluidstack. The deal will generate a profit on its $450 million investment and free up cash for TeraWulf to deploy into more lucrative AI infrastructure projects.
More deals are on the horizon
News also broke that Anthropic was seeking computing resources in Australia. The AI leader reportedly wants to secure at least 1.4 gigawatts of data center capacity in a deal that could be valued at up to $15 billion.
IREN is believed to be a leading candidate for at least a portion of this lucrative AI infrastructure project.
Freedom Capital Markets analyst Paul Meeks, in turn, upgraded IREN's stock from hold to buy and reiterated his $58 share price target. Meeks sees IREN's revenue surging from $717 million this year to $8.5 billion in fiscal 2028.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.