Kentucky will become home to a massive new AI data center that will power Anthropic’s AI models under a deal expected to generate nearly $20 billion in revenue.

TeraWulf, a Bitcoin mining company turned AI data center developer, announced Monday that Anthropic signed a 20-year lease for a “purpose-built AI infrastructure campus” on a former industrial site that TeraWulf acquired earlier this year in Hawesville, a town of about 1,000 people.

The lease is expected to generate around $19 billion of contracted revenue over the initial term, according to TeraWulf, which also said the lease is “expected to be backed by investment grade credit.”

“The Anthropic lease validates our strategy and establishes a long-lasting revenue stream with one of the world’s leading artificial intelligence companies,” Paul Prager, CEO of TeraWulf, said in a statement.

Prager added that the leasing agreement with the artificial intelligence company behind Claude “creates a framework for future expansion and demonstrates the value of our ability to source energy, develop infrastructure and secure long-term commitments to customers.”

The Hawesville data center will be developed in phases. Once completed, it will have enough power capacity to support about 400 megawatts of AI computing equipment.

The campus is expected to initially provide power for AI computing during the second half of 2027 before reaching its full capacity of 401 megawatts in early 2028, TeraWulf said.

The AI ​​data center is being built on the 750-acre site of the former Century Aluminum smelter, which was idled in 2022 before the site was sold to TeraWulf earlier this year.