Eastern Kentucky Data Center Agreement Could Deliver $100 Million in Savings for Residential Customers

A significant data center project planned for eastern Kentucky is moving forward under an expanded agreement between Kentucky Power and TeraWulf that would provide $100 million in credits for Kentucky Power residential customers, pending approval by the Kentucky Public Service Commission.

TeraWulf first announced plans for its Muskie Data Campus in the EastPark Industrial Park in Grayson earlier this year. The first phase is expected to begin coming online in 2028, with a second phase planned for 2029 that would double the size of the project. The project is expected to create hundreds of construction jobs as it is built, along with long-term jobs once the campus is operating.

Under the agreement, TeraWulf would fund $100 million in winter bill credits for Kentucky Power residential customers over 10 years. Kentucky Power estimates that a typical residential customer could receive approximately $25 per month during the winter heating season beginning in 2029.

TeraWulf would also cover costs associated with the campus’s increased energy needs. In addition to paying for its electric service, the company has agreed to cover the estimated financing costs for new power generation planned by Kentucky Power. The agreement also includes protections intended to keep costs associated with the project from being shifted to existing Kentucky Power customers.

“At Kentucky Power, we are working to bring new businesses and economic opportunity to eastern Kentucky, creating meaningful benefits for the customers and communities we serve,” said Cindy Wiseman, president and chief operating officer of Kentucky Power. “By providing a decade’s worth of direct residential bill credits, supporting critical energy infrastructure investments and helping ensure the costs associated with new demand are paid by the customers driving that growth, this agreement demonstrates how economic development can create lasting value for our customers and communities.”