Terawulf Inc (WULF.O): WULF Is Scaling HPC Data Center Expansion; Initiate at Buy/High Risk

研报英文原文证据摘录

Terawulf Inc (WULF.O): WULF Is Scaling HPC Data Center Expansion; Initiate at Buy/High Risk

Terawulf Inc (WULF.O)

28 June 2026 Citi Research

While the Google backstop reduces financial default risk on the Fluidstack leases,

it does not eliminate broader execution risks. Any operational friction, design

disputes, or delays in Fluidstack's own server procurement and deployment could

directly impact the timing of lease commencements and near-term cash flows. As

previously described, the Google backstop only becomes effective upon the actual

commencement of the lease. If construction or deployment delays push the project

timeline beyond specified contractual thresholds, the customer may gain the right

to terminate the lease entirely, which would not trigger the Google financial

guarantee, leaving TeraWulf to remarket the custom-built capacity.

Furthermore, this high degree of customer concentration may introduce strategic

constraints. As disclosed in the company's 10-K, certain HPC data center

agreements may include restrictive covenants that prohibit TeraWulf from

providing hosting services to specific third parties, including competitors of their

existing tenants. In an AI infrastructure market dominated by a handful of large

technology companies, these exclusivity clauses could hinder TeraWulf's ability to

diversify its tenant base, artificially limit its total addressable market, or

complicate efforts to secure new bookings for its massive forward development

pipeline at Cayuga, Hawesville, and Morgantown.

Design Risk

The one significant difference in design for TeraWulf’s hyperscale data centers is

the use of limited back-up generation (typically diesel and sometimes nat gas) if

power from the grid and/or its own generation were to be inaccessible for any

reason.