Fluor Lands EPC Deal for TeraWulf's $4B-Plus Kentucky Data Center Campus
Fluor Corp. has signed a definitive engineering, procurement and construction (EPC) contract with TeraWulf Inc. for three AI-focused data center buildings at TeraWulf’s $4-billion-plus campus in Hawesville, Ky., Engineering News-Record reports. TeraWulf announced the agreement in a Nov. 4 statement.
What Was Signed
The value of the EPC contract was not disclosed. ENR reports that the agreement sets cost reporting and construction milestones and includes provisions meant to hold Fluor accountable for cost and schedule performance. Fluor is responsible for certain cost overruns up to an amount tied to a percentage of its profit.
Fluor has been doing early engineering, master planning and preconstruction work at the site since March under a limited notice to proceed. Leo Kaid, president of Fluor’s advanced technologies and life sciences business line, said the firm’s EPC capabilities and workforce position it to deliver the project with a focus on safety, quality and schedule certainty.
The Site and the Schedule
TeraWulf is redeveloping a former aluminum smelter on the Ohio River, about 70 miles southwest of Louisville. The smelter operated from 1969 until 2022. TeraWulf bought the property on Feb. 2 for $302 million, gaining more than 250 buildable acres, an energized substation, multiple high-voltage transmission lines and a direct connection to the regional transmission network.
Construction started before the EPC agreement was finalized and has included demolition, remediation, site preparation, and environmental and permitting work. TeraWulf has identified asbestos remediation and spent pot liner removal as its main asset-retirement obligations at the site, totalling about $16.5 million as of June 30.
TeraWulf expects the first portions of the campus to be ready in late 2027, with phased completions continuing through the second quarter of 2028.
Who Is Backing the Build
Anthropic signed a 20-year lease with TeraWulf in July for about 401 MW of critical IT capacity at the campus. TeraWulf has said the lease represents about $19 billion in revenue over its term. Google is providing credit support for the project, a structure intended to improve TeraWulf’s access to construction financing.
The project cleared a regulatory step on Aug. 21, when the Kentucky Public Service Commission approved a 15-year, 482-MW electric-service agreement involving TeraWulf, Big Rivers Electric Corp. and Kenergy Corp. The electric cooperatives will serve the campus, while TeraWulf is responsible for market, transmission and customer-specific infrastructure costs. TeraWulf also agreed to reimburse Big Rivers for substation modifications, a net obligation of about $11.2 million after a $600,000 credit for electrical equipment. The commission found that about 482 MW of transmission capability remains available at the site, where the delivery point connects to five 161-kV Big Rivers circuits.
What It Means for Subcontractors
- Fluor’s procurement is the next gate. With the EPC signed, trade packages for the three buildings will flow through Fluor. The scope of those packages was not disclosed, so contractors should ask Fluor’s project team how it plans to buy civil, electrical and mechanical work.
- Expect schedule pressure. First portions are due in late 2027 and phased completions run into the second quarter of 2028, so early mobilization and long-lead equipment commitments matter.
- Read the risk terms. Fluor carries cost overruns only up to a cap tied to its profit. Subcontractors should check how much of that cost and schedule pressure is passed down in their own agreements.
- Site work is already moving. Demolition, remediation and permitting are under way, which means early-works scopes are likely already awarded.
