Google to Finance Anthropic's Texas Data Center with $5B+ — 500MW Initial Capacity, Expandable to 7.7GW

Google is in final negotiations to provide over $5 billion in financing for a Texas data center project leased by AI startup Anthropic, as reported by LiveMint and Seeking Alpha.

The project will be built on a 2,800-acre site operated by Nexus Data Centers, initially supplying approximately 500 megawatts of power with operations targeted to begin in early 2026. Future expansion plans could reach 7.7 gigawatts. Google is expected to provide construction loans, leveraging parent company Alphabet's creditworthiness for low-cost financing.

The data center is situated near multiple major gas pipelines operated by Enterprise, Energy Transfer, and Atmos, with on-site gas turbine power generation under consideration. This 'behind-the-meter' strategy aims to reduce grid dependency and control energy costs. The Electric Reliability Council of Texas (ERCOT) projects that data center power consumption in the state will reach 78 gigawatts by 2031, representing approximately 36% of total state electricity demand.

This financing symbolizes a new phase in the AI development race centered on securing computational resources. Google aims to strengthen its partnership with Anthropic to counter the Microsoft-OpenAI alliance.