The $14bn TeraWulf data center in Hancock County, Kentucky is making headway as residents mount opposition. The new Hyperscale data center is set to be built in southwest Louisville as the first of its kind in the region. The projected cost on the campus is based on statements from TeraWulf and filings by the local utility. The estimate includes up to $4 billion in site development.

It also includes a $10 billion or more in additional investment by a future data center tenant, including servers and other hardware. Construction is expected to commence later this year, with the campus slated to come online in late 2027. Moreover, earlier insights noted the campus will be constructed on the site of a former Century Aluminium smelter following a $200 million sale.

The data center’s location allows it to avoid some of the planning and zoning hurdles that have impeded other projects around Kentucky. As a result, the Hancock County project is on track to be among the state’s first large-scale, operational data centers. However, despite advancements, opposition is greatly mounting. Other states across America such as Georgia are also advancing monumental data center projects such as Project Sail.

The project is intended to support large-scale digital infrastructure capacity through multiple high-density computing facilities. A Development of Regional Impact, filing outlines plans for 13-building data center campus in Coweta County.. The proposed site is located near Newnan, off U.S. Route 27, within an area bordered by Wagers Mill and Welcome to Sargent roads. Following opposition, West Hospitality Partners has withdrawn its Pekin data center campus proposal in Illinois. The firm also requested the return of its $85,000 deposit. The withdrawal comes following strong opposition from local residents, which influenced the city’s decision. Earlier this week, Pekin Mayor Mary Burress read a letter from the law firm Patzik, Frank & Samotny Ltd. on behalf of Western Hospitality Partners.

Opposition Regarding the TeraWulf Data Center in Hancock County

Residents of Hancock County are joining efforts to oppose the TeraWulf data center campus despite its rapid advancements. Many questions on the viability of the campus and whether it will bring any tax benefits commensurate with draws on local infrastructure and quality of life. David Landers, 32, lives in Hawesville and grew up just across the river in Tell City. He and others in the community have voiced opposition to the data center.

Their concerns revolve around electricity, water use and environmental impact. Moreover, they are worried about potential contamination from the site’s previous industrial use. A petition to pause the project until more details are available and “residents are given a meaningful voice in deciding the site’s future” has garnered more than 1,100 signatures. Landers said elected officials have not shown a willingness to intervene in the project’s development.

“Every time we go to a meeting, they just repeat that they didn’t know anything about it and that they found out last-minute,” Landers said. “And they say their hands are tied, because it’s a private sale…. It kind of seems like they don’t care.” Nonetheless, TeraWulf is in negotiations with a tenant for its Kentucky data center project, which it expects to finalize this year. The project will support high-performance computing and artificial intelligence, which requires huge amounts of electricity. Kentucky leaders are walking a tightrope as they seek to both incentivize and regulate a surge in new data center development.

Project Factsheet:

• Project Name: TeraWulf Hyperscale Data Center Campus
• Location: Hancock County, Kentucky, USA
• Estimated Investment Value: $14 Billion
• Project Type: Hyperscale AI and high-performance computing data center

Timeline

• 2026: Development advancing and tenant negotiations ongoing
• Late 2026: Construction expected to begin
• Late 2027: Campus targeted to come online

Site & Scale

• Project Site: Former Century Aluminum smelter property
• Site Acquisition: $200 million property sale
• Estimated Site Development Cost: Up to $4 billion
• Future Tenant Investment: $10 billion+ in servers and hardware
• Campus Type: Large-scale hyperscale AI infrastructure facility

Project Teams

• Developer: TeraWulf
• Potential Tenants: Undisclosed hyperscale/AI computing operators
• Local Stakeholders: Hancock County officials and residents

Infrastructure Scope

• Redevelopment of former industrial smelter site
• Construction of hyperscale data center infrastructure
• High-performance computing and AI server deployment
• Large-scale electrical and utility infrastructure
• Supporting water and environmental management systems

Strategic Objectives

• Expand AI and high-performance computing capacity
• Position Kentucky as a data center hub
• Repurpose former industrial land for digital infrastructure
• Support large-scale cloud and AI workloads
• Drive regional economic development and investment

Challenges

• Strong local opposition over environmental concerns
• Concerns about electricity demand and water usage
• Questions about tax benefits and community impact
• Potential contamination concerns from previous industrial use
• Community criticism over lack of transparency and public engagement

Current Status

• Project moving forward despite mounting opposition
• More than 1,100 signatures gathered on opposition petition
• Tenant negotiations expected to conclude this year
• Construction remains scheduled to begin later in 2026