Google is preparing to support a multibillion-dollar data center project in Texas leased to Anthropic as competition for AI infrastructure accelerates.
The project, operated by Nexus Data Centers, could exceed $5 billion in its initial phase, with Google expected to provide construction loans, Financial Times reported on Friday, citing people familiar with the matter. A consortium of banks is also competing to arrange financing by mid-year, per the report.
According to the report, Anthropic recently signed a lease for the 2,800-acre campus, which forms part of its broader infrastructure tie-up with Google. Construction is already underway, supported by early-stage debt financing from Eagle Point, a publicly traded closed-end investment company.
The site is expected to deliver around 500 megawatts of capacity by late 2026, roughly equivalent to powering 500,000 homes, with potential expansion to 7.7 gigawatts. Its location is near major gas pipelines operated by companies including Enterprise Products Partners, Energy Transfer and Atmos Energy, allowing the project to rely on on-site gas turbines.
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Judge blocks Pentagon ban on Anthropic
On Thursday, a US federal judge in San Francisco temporarily blocked the Pentagon from labeling Anthropic a national security risk and halting government use of its AI tools. Judge Rita Lin granted a preliminary injunction, pausing a directive backed by President Donald Trump that sought to cut off federal use of Anthropic’s chatbot, Claude.
The ruling came in a lawsuit filed by Anthropic, which argued that Defense Secretary Pete Hegseth overstepped his authority by designating the company a supply chain risk. The judge described the government’s actions as “arbitrary” and warned against branding a US company as a threat without clear legal basis.
The dispute followed a breakdown in negotiations between Anthropic and the Pentagon over the military use of its AI. The company resisted allowing its models to be used for lethal autonomous weapons or mass surveillance, leading to a broader standoff with the administration.
In her decision, Lin said the government may have retaliated against Anthropic for its public stance, calling the measures a likely violation of First Amendment protections.
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US military used Anthropic AI in Iran strike
As Cointelegraph reported, US military units reportedly used Anthropic’s Claude AI model during a major airstrike on Iran, even after the ban order by Trump. Military commands, including US Central Command (CENTCOM) in the Middle East, reportedly used the AI model for operational support
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