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Google has agreed to backstop Anthropic’s obligations under a 20-year, $19 billion lease for 401 megawatts of capacity at TeraWulf’s Kentucky data center project. If Anthropic defaults or becomes insolvent, Google could assume the lease or, under specified conditions, pay a termination fee for a proportional stake in the project subsidiary—not TeraWulf itself.
Google has agreed to backstop Anthropic’s obligations under a 20-year, $19 billion lease for 401 megawatts of computing capacity at bitcoin miner TeraWulf’s Kentucky data center project, according to a company filing. If Anthropic defaults or becomes insolvent, Google could take over the lease or, under certain conditions, pay a termination fee in exchange for a proportional stake in the project subsidiary.
The agreements were signed on Nov. 4, TeraWulf said in a filing. Google’s support for each of the three leased sections begins only after the final data hall in that section is delivered. TeraWulf expects capacity deliveries to start in late 2027 and continue through the second quarter of 2028.
If Anthropic fails to pay rent or becomes insolvent, Google can step in as tenant and assume the lease. The agreement also allows Google, in certain circumstances, to pay a termination fee and receive an ownership stake in Raylan Data, the TeraWulf subsidiary operating the project. The stake would be calculated by dividing the payment by the project’s total development and construction cost, including land, infrastructure, equipment and financing. For example, a payment equal to 30% of that cost would correspond to a 30% stake.
For the first six years after its support takes effect, Google generally must take over the lease rather than end it by paying the fee. The filing describes an exception if Google’s tensor processing unit (TPU) pods installed in the data halls can use less than half the power reserved for the tenant. The backstop obligations end if Anthropic, its parent or a subsidiary maintains an investment-grade credit rating for at least three months.
Google’s Backstop Could Reshape Project Ownership
The arrangement gives TeraWulf a major credit backstop for a large AI infrastructure contract, potentially helping the bitcoin miner secure financing for a project with substantial construction and equipment costs. It also links Anthropic’s ability to meet its lease obligations to Google’s potential role in the facility—not only as a financial backstop, but possibly as a tenant or partial owner of the project subsidiary.
The ownership possibility is conditional, not a current investment announcement. The filing does not say Google has taken a stake, and any stake would be in Raylan Data, not publicly traded TeraWulf. For readers tracking the company’s business, the deal illustrates how its facilities and power capacity are being contracted for AI computing alongside its established bitcoin-mining operations.
The arrangement also provides a potential path for continuity if Anthropic cannot perform: Google could assume the lease, keeping the project tied to a tenant, or pursue the specified termination-fee option when allowed. The actual outcome would depend on the contract’s conditions and the project’s costs at the time.
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TeraWulf’s Shift Toward AI Capacity
TeraWulf built its business around bitcoin mining and has increasingly pursued data-center infrastructure and power supply for AI customers. The Anthropic lease is one of the largest contracts in that effort, according to the source report. Its scale—401 megawatts over 20 years—makes the project a significant commitment for the companies involved.
The Kentucky facility is planned to deliver capacity in stages rather than all at once. Google’s support is tied to completion of the final data hall in each of the three sections, while TeraWulf’s stated delivery schedule extends from late 2027 into the second quarter of 2028. The filing’s conditions therefore connect the guarantee to construction milestones as well as to Anthropic’s financial status.
The agreement is not a direct purchase of TeraWulf shares. Any ownership arising from the termination-fee mechanism would be in the subsidiary that operates the project. That distinction matters when describing what Google could own: the filing outlines a conditional interest in a specific project vehicle, not an ownership stake in the publicly traded miner as a whole.
“Google’s support for each of the three leased sections only kicks in once the final data hall in that section is delivered.”
— TeraWulf, in its Nov. 4 filing as described in the report
Default Conditions and Ownership Still Unsettled
Google has not been reported to have taken an ownership stake, and the filing describes that possibility as conditional on Anthropic defaulting or becoming insolvent and on the agreement’s termination-fee provisions applying. The source material does not indicate that Anthropic has missed a payment, become insolvent or lost investment-grade status.
The eventual size of any stake cannot be determined from the disclosed example alone. It would depend on the amount Google pays and the total cost of developing and building the facility, which includes financing and other expenses. The source material does not provide a final project-cost figure or say whether Google would choose an ownership payment if that option became available.
Construction and delivery remain in the future. The filing’s schedule anticipates capacity starting to come online in late 2027 and continuing through the second quarter of 2028, but the source does not report that any halls have been completed or capacity delivered. The arrangement’s practical effect will depend on project progress, Anthropic’s credit and payment status, and the contract terms.
Project Deliveries Begin in Late 2027
The next stated milestone is delivery of data-center capacity, which TeraWulf expects to begin in late 2027. Deliveries are scheduled to continue through the second quarter of 2028, with Google’s backstop for each leased section becoming effective after that section’s final data hall is delivered.
Further developments to watch include construction progress, the timing of each section’s completion, and any change in Anthropic’s credit status or ability to meet rent obligations. If a default or insolvency occurs, the contract would determine whether Google assumes the lease or can use the termination-fee route. The source material does not identify a separate near-term decision date for Google to take ownership.
Key Questions
What agreement did Google make?
Google agreed to backstop Anthropic’s obligations under a 20-year, $19 billion lease for 401 megawatts of capacity at TeraWulf’s Kentucky data center project, according to TeraWulf’s filing.
Could Google own part of TeraWulf?
The disclosed ownership option is for a stake in Raylan Data, the project subsidiary, not in TeraWulf itself. It would be available only under specified conditions if Anthropic defaults or becomes insolvent and Google pays a termination fee.
Has Anthropic defaulted on the lease?
The source material does not report a default, missed rent payment or insolvency. The filing describes what Google may do if those circumstances arise.
When is the Kentucky project expected to deliver capacity?
TeraWulf expects deliveries to begin in late 2027 and continue through the second quarter of 2028. Google’s support for each of the three sections takes effect after its final data hall is delivered.
How would Google’s potential stake be calculated?
The agreement ties the stake to the termination payment as a share of total project development and construction costs. The report gives an example: a payment equal to 30% of total cost would correspond to a 30% stake in the subsidiary.
Source: coindesk.com
