A wave of buying in power-backed data center stocks reverses last week’s steep selloff, with AI infrastructure names leading gains across the broader market.

TeraWulf (NASDAQ: WULF) climbs to $12.42 in morning trading, up 6%, moving in lockstep with other power-backed data center builders across the sector.

Applied Digital (NASDAQ: APLD) posts the sharpest gain of the group, rising 8% to $19.54, outpacing both TeraWulf and IREN in the early session.

IREN Limited (NASDAQ: IREN) shares advance 5% to $28.41, nearly keeping pace with TeraWulf as the AI infrastructure group broadly recovers from last week’s pressure.

Last week’s selloff was driven by financing concerns sweeping through AI infrastructure and neocloud stocks, though TeraWulf carries approximately $3 billion in cash and restricted cash as of June 30.

TeraWulf, Applied Digital, and IREN all build and lease data center capacity for AI customers, with TeraWulf and IREN actively shifting their operations away from cryptocurrency mining.

The capital requirements are substantial, as TeraWulf has $1.7 billion in remaining WULF Compute project spending, with that expansion expected to be financed with 68% debt and 32% equity.

Power access remains a central pillar of the bullish case for this group, with the Department of Energy projecting data centers could account for up to 12% of U.S. electrical demand by 2028.

The CoinShares Bitcoin Mining and Digital Power ETF (NASDAQ: WGMI) rises 6%, with TeraWulf, Applied Digital, and IREN all appearing in its June 30 holdings report.

By comparison, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) gains just 0.46%, highlighting how concentrated today’s buying is within power-backed data center names.

TeraWulf’s transition away from Bitcoin mining is well advanced, with high-performance computing leases generating over 70% of total company revenue in Q2 2026, up from zero a year earlier.

The company’s Lake Mariner facility in New York already has 102 megawatts of revenue-generating critical IT capacity online, with 336 megawatts currently under construction.

TeraWulf’s most significant contract is a 20-year lease with Anthropic for 401 megawatts at the Justified Data Campus in Kentucky, representing $19 billion in contracted revenue over the initial term.

Initial delivery at the Justified campus is not expected until the second half of 2027, meaning near-term revenue contributions from that agreement remain some time away.

Earlier this month, TeraWulf doubled the power commitment for its Muskie data center campus in Kentucky under an expanded agreement with Kentucky Power, which was set to build a new 345-kilovolt substation at the site.

Paul Prager, TeraWulf’s chairman and CEO at the time of the August 5 earnings call, stated, “Muskie provides the next gigawatt-scale platform in our pipeline, and we are actively advancing commercialization discussions for the site.”

Nazar Khan, TeraWulf’s chief technology officer at the time, described those commercialization discussions as “pretty robust,” adding confidence to the company’s long-term pipeline narrative.

Applied Digital operates Polaris Forge campuses in North Dakota and Delta Forge campuses in Louisiana and Alabama, serving hyperscale customers under long-term contracts in a similar leasing model.

IREN’s development pipeline spans sites in Texas, Oklahoma, British Columbia, Australia, and Spain, giving the company a total pipeline exceeding 5 gigawatts of capacity.

With TeraWulf’s Muskie tenant search still unresolved and major capacity deliveries not scheduled until late 2027 or beyond, traders may choose to keep their exposure measured until greater clarity emerges.