‘Not All Megawatts Are Created Equally’ in AI Race

The context: Building AI data centers remains a multi-year effort with labor emerging as a key execution challenge.

• Prager said the Kentucky facility is expected to come online beginning in 2028 and that TeraWulf has hired Fluor to help construct the project.
• He said securing skilled labor and contractors is a bigger challenge than equipment procurement as hyperscale AI facilities become increasingly specialized.
• Prager said proximity to reliable power remains the most important requirement for AI customers.

Reading between the lines: TeraWulf says Bitcoin mining is no longer part of its long-term strategy.

• Prager said the company originally entered Bitcoin mining because it already owned power assets and mining provided a flexible electricity customer.
• He said Bitcoin’s commodity-driven revenue model did not provide the predictable, long-term cash flows the company prefers.
• “We’re not involved in Bitcoin,” Prager said, describing AI infrastructure as a more natural fit for TeraWulf’s business.

Worth watching: Prager argued the AI infrastructure boom is constrained by power quality rather than available land.

• He said the U.S. faces a shortage of electricity and warned investors that “not all megawatts are created equally.”
• Prager said successful AI campuses require reliable generation, redundant transmission, favorable regulation and strong community relationships.
• He added that TeraWulf focuses on redeveloping former industrial sites and, where needed, adding new power generation to support both AI facilities and the broader electric grid.