Google is set to back a significant data center initiative in Texas, with estimated costs surpassing $5 billion. This project, which involves a lease agreement with Anthropic, is being managed by Nexus Data Centers and is part of a larger strategy to enhance AI infrastructure. Construction is already in progress, aided by initial financing from Eagle Point, a closed-end investment firm.
The expansive 2,800-acre site aims to generate around 500 megawatts of power by late 2026, sufficient to supply electricity to approximately 500,000 homes. The facility has the potential to expand its capacity to 7.7 gigawatts and is strategically located near key gas pipelines from major operators like Enterprise Products Partners and Energy Transfer.
In a separate development, a federal judge in San Francisco has temporarily halted the Pentagon's effort to classify Anthropic as a national security risk, which would restrict government use of its AI technologies. This ruling followed a lawsuit from Anthropic challenging the Pentagon's authority in designating the company as a supply chain risk.