Photo: Google servers inside a data center / Wesley Nitsckie, Wikimedia Commons / CC BY-SA 2.0
By: JBizNews Desk 🌎
Google has agreed to backstop Anthropic’s 20-year, $19 billion lease of bitcoin miner TeraWulf’s 401-megawatt Kentucky data center site, and could end up owning a stake in the project company if Anthropic defaults, CoinDesk reported, citing a securities filing.
Under the terms, signed November 4, Google may take over the lease if Anthropic defaults or becomes insolvent, or under certain conditions pay a termination fee in exchange for proportional ownership of Raylan Data, the subsidiary that owns the project – not shares in TeraWulf itself, CoinDesk reported.
The takeover requirement generally applies during the first six years of the lease, with an exception for TPU pods using less than half the reserved power, according to the report. Google’s obligations end three months after Anthropic or its investment group reaches an investment-grade credit rating.
Computing capacity from the site is expected to be delivered from late 2027 through the second quarter of 2028, CoinDesk reported.
The arrangement is a guarantee, not an acquisition: Google is not buying TeraWulf, and any ownership would be conditional on an Anthropic default. TeraWulf said in July it was raising $3.5 billion for the Anthropic-leased data center, JBizNews reported.
JBizNews Desk | New York
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