THE ESSENTIALS IN 30 SECONDS

  • Google agreed to backstop certain Anthropic obligations under three leases at the Justified Data Campus, covering about 401 MW of critical IT load over 20 years.
  • If Anthropic defaults, Google can pay the rent due and take over the lease, or in some cases pay a termination fee that comes with a right to equity in the TeraWulf subsidiary.
  • Fluor signed a definitive EPC contract for three buildings; the guaranteed maximum price is not yet set and the project debt has not closed.

US data center developer TeraWulf said on November 4 that Google will stand behind part of Anthropic's rent obligations at the Justified Data Campus in Hawesville, Kentucky. The arrangement is meant to support debt financing the company still has to raise for the site, where Anthropic holds about $19 billion in contracted lease commitments.

How the backstop works

According to TeraWulf's SEC filing, its subsidiary Raylan Data signed a 20-year lease with Anthropic in July 2026 for roughly 401 MW of critical IT load, split across three premises named CB-1, CB-2 and CB-3. On November 4, the parties, including Google, signed one credit support agreement per building, and Raylan and Anthropic amended the leases; the filing does not describe those amendments.

Each backstop only takes effect once the last data hall under its lease has started. If Anthropic misses payments or becomes insolvent, Google can either pay the rent currently due and step in as tenant, or, in certain circumstances, pay a termination fee. Paying that fee gives Google the right to acquire an equity stake in Raylan. The support can end if Anthropic, or an affiliate guaranteeing its obligations, holds certain investment-grade credit ratings for at least three months.

The company points to Alphabet's AA+ rating at S&P and Aa2 at Moody's. Chief financial officer Patrick Fleury said in the release that cost of capital is "fundamental to infrastructure development", presenting the backstop as a way to borrow on better terms.

Construction with Fluor

TeraWulf also signed a definitive engineering, procurement and construction (EPC) agreement with Fluor Enterprises for the three buildings, extending a limited notice to proceed issued in March. The contract covers engineering through testing and commissioning, with delivery milestones and open-book cost reporting. TeraWulf expects data halls to be ready for service in phases from late 2027 through the second quarter of 2028.

What remains open

TeraWulf has not disclosed the size or terms of the planned debt, the amount or cap of Google's support, or the value of the Fluor contract, whose guaranteed maximum price will be set as engineering advances. The financing is described as anticipated, not closed. Anthropic's rent only starts as each hall is delivered, so the backstop does not cover the risk of delays: TeraWulf's own risk factors cite timely completion, financing on acceptable terms and the availability of power and electrical equipment.