US data center developer TeraWulf has secured approval from the Kentucky Public Service Commission for a 482MW electrical service agreement for its planned Justified Data Campus in Hancock County, Kentucky.

Under the terms of the retail electric service agreement (RESA), TeraWulf is responsible for the market, transmission, delivery, and other costs attributable to serving its load, as well as the customer-specific infrastructure costs and substantial credit-support obligations.

The campus will utilize an already existing 482MW grid connection.

The agreement also includes negotiated demand adders and customer charges that provide incremental contributions to electric cooperatives Big Rivers Electric Corporation and Kenergy Corp.

“Power is the gating factor for AI infrastructure, but how you bring that power to market matters,” said Paul Prager, CEO of TeraWulf. “At Justified, we’re taking a former industrial site with existing transmission infrastructure and putting it back to productive use at scale. We’re paying the costs associated with our load, protecting existing ratepayers, and making a significant long-term investment in Kentucky. We believe that’s the right model for responsible data center development, and the Commission’s decision is an important validation of that approach.”

The 480MW Justified Data Campus in Hancock County is set to be developed on a former aluminum processing site acquired from Century Aluminum. The first facility on the 790-acre site is due online in 2027. Century Aluminum operated there from 1969 to 2022. In July, it was announced that AI lab Anthropic signed on to be a long-term tenant at the facility.

TeraWulf acquired another site in Kentucky in May, where it intends to develop a 1GW data center.

TeraWulf is also developing sites in Maryland and is planning a second development in New York in Lansing.