Google Set to Finance $5 Billion Anthropic Data Facility in Texas: Sources
Tech giant Google alongside financial institutions are working to fund a massive $5 billion data facility in Texas for Anthropic, coinciding with a federal judge's decision to halt government restrictions on the AI company's operations.
The tech behemoth Google is positioning itself to back a massive data center initiative in Texas that will be leased to Anthropic, reflecting the intensifying race for artificial intelligence infrastructure among major players in the industry.
The initiative, which is being operated by Nexus Data Centers, is anticipated to surpass $5 billion during its first phase, with Google poised to supply construction loans, the Financial Times disclosed on Friday, referencing sources with knowledge of the situation. Multiple banking institutions are also vying to secure financing arrangements before the middle of the year, according to the same report.
Based on the reporting, Anthropic has recently executed a lease agreement for the sprawling 2,800-acre facility, representing a component of its more extensive infrastructure partnership with Google. Development work has already commenced, backed by preliminary debt funding from Eagle Point, a closed-end investment company that trades publicly.
The facility is projected to provide approximately 500 megawatts of power capacity by the end of 2026, which is roughly the amount needed to supply electricity to 500,000 residential properties, with possibilities for growth reaching 7.7 gigawatts. The chosen location sits in proximity to significant natural gas pipeline infrastructure controlled by entities such as Enterprise Products Partners, Energy Transfer and Atmos Energy, enabling the facility to depend on gas turbines situated on the premises.
Judge blocks Pentagon ban on Anthropic
A federal judge in the United States, based in San Francisco, issued a temporary order on Thursday preventing the Pentagon from classifying Anthropic as a threat to national security and prohibiting federal agencies from utilizing its artificial intelligence technologies. Judge Rita Lin issued a preliminary injunction, suspending a directive supported by President Donald Trump that aimed to terminate federal government usage of Anthropic's conversational AI platform, Claude.
The judicial decision emerged from legal action initiated by Anthropic, which contended that Defense Secretary Pete Hegseth exceeded his legal authority when he designated the organization as a supply chain security concern. The judge characterized the administration's conduct as "arbitrary" and cautioned against categorizing an American enterprise as a security threat in the absence of a solid legal foundation.
The conflict emerged following unsuccessful negotiations between Anthropic and the Pentagon regarding military applications of its artificial intelligence technology. The organization opposed permitting its AI models to be deployed for lethal autonomous weaponry or widespread surveillance operations, resulting in an expanded confrontation with the current administration.
Within her ruling, Lin indicated that the federal government may have taken punitive action against Anthropic due to its publicly stated position, characterizing the actions as a probable infringement of First Amendment constitutional protections.
US military used Anthropic AI in Iran strike
According to Cointelegraph's previous coverage, American military forces allegedly utilized Anthropic's Claude artificial intelligence system throughout a significant aerial bombardment operation against Iran, despite the prohibition directive issued by Trump. Various military command structures, including US Central Command (CENTCOM) operating in the Middle Eastern region, allegedly employed the AI system to provide operational assistance.