JPMorgan Chase and Morgan Stanley are preparing to syndicate a $350m project finance loan for TeraWulf to private credit funds, according to a report by Bloomberg citing sources familiar with the deal.
The transaction, structured as a project financing, will support the construction of a new data centre in Upstate New York. Market participants note the deal reflects the growing collaboration between traditional banks and private credit lenders, as Wall Street institutions increasingly distribute debt via direct lending channels rather than public markets.
TeraWulf executives had previously indicated during a recent earnings call that a financing process was underway, with completion targeted for mid-year.
The deal comes amid a broader trend of banks co-originating or advising on transactions ultimately placed with non-bank lenders, especially in complex or highly tailored financings. Notable recent examples include Clearlake Capital’s $5.5bn debt package backing its acquisition of Dun & Bradstreet, and Thoma Bravo’s $4bn loan to support its buyout of Boeing subsidiary Jeppesen.
While smaller in scale, the TeraWulf facility will serve as a key test of private credit appetite for infrastructure-style investments with long-dated revenue profiles – particularly those tied to artificial intelligence and digital infrastructure. The demand for hyperscale computing capacity continues to drive capital deployment across the data centre sector.
TeraWulf, which focuses on sustainable, zero-carbon bitcoin mining, signed a lease agreement late last year with Core42, an AI infrastructure and digital services firm, for the New York facility. In a separate transaction last October, the company raised $500m through a private placement of convertible notes.
