CoinDesk
Google has agreed to backstop Anthropic's 20-year, $19 billion lease for 401 megawatts of computing capacity at TeraWulf's Kentucky data center project. If Anthropic defaults or becomes insolvent, Google can take over the lease or, under certain conditions, pay a termination fee for a proportional stake in the project subsidiary.
The stake would be in Raylan Data, not publicly traded TeraWulf. Capacity deliveries are expected to begin in late 2027 and continue through the second quarter of 2028.
Why it matters
The arrangement is designed to help TeraWulf secure financing as the Bitcoin miner expands into AI infrastructure. Google's potential ownership share would depend on its termination payment relative to the project's total development and construction costs, including land, equipment and financing.
For the first six years after its support takes effect, Google generally must take over the lease rather than terminate it. An exception applies if the installed Google TPU pods can use less than half the power allocated to the tenant.
Market impact
The Anthropic lease is one of the largest contracts in TeraWulf's shift from Bitcoin mining toward supplying power and infrastructure for AI companies. Google's backing addresses tenant payment risk as the company seeks project financing, while its conditional stake would apply only to the project subsidiary.
Google's support for each of the three leased sections begins once that section's final data hall is delivered. Its obligations end if Anthropic, a parent or a subsidiary holds an investment-grade credit rating for at least three months.
Frequently asked questions
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What does Google's support cover?
Google is backing Anthropic's obligations under a 20-year, $19 billion lease for 401 megawatts of computing capacity at TeraWulf's Kentucky project.
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Would Google receive shares in TeraWulf if Anthropic defaults?
No. Under certain conditions, Google can pay a termination fee for a proportional stake in Raylan Data, the project subsidiary, rather than publicly traded TeraWulf.
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How would Google's potential ownership stake be calculated?
The stake depends on the termination payment relative to the project's total development and construction costs, including land, infrastructure, equipment and financing.
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When is TeraWulf's Kentucky project expected to deliver capacity?
Deliveries are expected to begin in late 2027 and continue through the second quarter of 2028.
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When do Google's lease-support obligations end?
The obligations end if Anthropic, a parent or a subsidiary holds an investment-grade credit rating for at least three months.
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