Google Reportedly Backs $5 Billion Texas Data Center for AI Firm Anthropic

Google is moving to finance a massive new data center in Texas for artificial intelligence company Anthropic, according to a Financial Times report. The move signals an intensifying race to secure the physical infrastructure required for advanced AI systems.

The project, managed by Nexus Data Centers, represents an initial investment likely surpassing $5 billion. Sources indicate Google will provide construction loans, with a bank consortium aiming to finalize broader financing by summer. Anthropic has already signed a lease for the 2,800-acre site, which builds on its existing infrastructure partnership with Google. Early construction is funded by debt from Eagle Point, an investment company.

Slated to open in late 2026, the facility is designed to supply about 500 megawatts of power—enough for roughly half a million homes—with plans to eventually scale to 7.7 gigawatts. Its Texas location provides access to major natural gas pipelines, enabling the use of on-site turbines for electricity generation.

The report follows a significant legal victory for Anthropic. A U.S. federal judge in San Francisco temporarily blocked a Pentagon order that had labeled the company a national security risk and barred government agencies from using its AI tools. Judge Rita Lin called the government's actions "arbitrary" and suggested they may have been retaliation for Anthropic's refusal to allow its technology in autonomous weapons or mass surveillance systems. Despite the ban, some military units had reportedly already used Anthropic's Claude AI for operational support.

Source: CoinTelegraph