Key facts
- Nexus Data Centers is in talks to raise $15 billion for a Texas data center.
- The data center is intended for AI startup Anthropic.
- Google is providing financial guarantees and supplying chips for the project.
- A bank group led by Morgan Stanley is discussing the financing.
- The project includes a 1.6-gigawatt power plant.
- Google is expected to receive a 20% equity stake in the project.
Data-center developer Nexus Data Centers is reportedly in advanced discussions to secure $15 billion in financing for a large campus in Hubbard, Texas, intended for use by AI startup Anthropic. Alphabet's Google is expected to provide significant backing, including financial guarantees and the supply of chips.
A banking group, led by Morgan Stanley, is negotiating the financing for the project, which includes a 1.6-gigawatt natural-gas-fired power plant. Google's commitment involves guaranteeing billions of dollars of Anthropic's lease and power-payment obligations should the startup default. This support is reportedly limited to the minimum level required by lenders.
The financing package is said to comprise a $14 billion bridge loan and a revolving credit facility. In exchange for its backing, Google is anticipated to receive approximately a 20% equity stake in the data-center and power project. Anthropic plans to equip the facility with tensor processing units, chips co-designed by Google and Broadcom, with these chips to be financed separately through an agreement between Anthropic and Broadcom.