Google to finance $5B Texas data center for Anthropic
Google is providing financing for a $5 billion data center project in Texas that will be leased to AI company Anthropic. The 2,800-acre campus represents Google's deepening infrastructure commitment to Anthropic as demand for AI computing capacity accelerates.
A consortium of banks is competing to fund the initial phase by mid-year, but Google's involvement allows the project to secure financing at lower costs given the tech giant's strong credit rating, according to Financial Times sources.
Timeline and capacity
Construction has already started on the site. The facility is expected to deliver 500 megawatts of capacity by late 2026-enough to power roughly 500,000 U.S. homes. The campus could eventually expand to 7.7 gigawatts.
The location near major gas pipelines allows the data center to rely on onsite gas turbines for power generation.
Political complications
Google's infrastructure deal with Anthropic comes as the AI company faces a standoff with the U.S. government over its military contracts.
Anthropic held a $200 million contract with the Pentagon to deploy its AI models on classified military networks. In February, the company said it could not "in good conscience" comply with a Department of War demand to remove safety precautions-including those related to mass domestic surveillance.
Anthropic also raised concerns about its technology being used in the January abduction of Venezuelan President Nicolás Maduro by U.S. military forces.
On February 27, U.S. Secretary of War Pete Hegseth designated Anthropic a "supply chain risk," a classification typically reserved for foreign adversaries. The order barred any military contractor or partner from conducting commercial activity with the company.
A federal judge in California temporarily blocked the designation on the same day the Google financing was reported, finding that the "financial and reputational harm" could "cripple" Anthropic.
Anthropic said it will challenge the matter in court.
Market reaction
The infrastructure expansion announcement came days after leaks of Anthropic's next frontier AI model, called "Mythos," caused cybersecurity stocks to decline on concerns the model could be exploited by hackers.
For finance professionals tracking major tech infrastructure investments, understanding the scale and timing of these commitments matters for broader market assessment. Consider exploring AI for Finance resources to stay current on how AI infrastructure spending affects corporate strategy and valuations.
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