Google is backing TeraWulf’s $19 billion data center lease agreement with Anthropic and could assume the lease or, under certain conditions, take a stake in the project company if payment obligations are not met.
According to a company filing cited by CoinDesk, Bitcoin miner TeraWulf signed a 20-year lease agreement with Anthropic for 401 megawatts of computing capacity at its Kentucky campus. Google’s backing is intended to make it easier for the project to secure financing.
The agreement, signed on November 4, calls for Google to step in if the AI company fails to meet its lease payments or becomes unable to pay. The initial capacity is expected to come online in late 2027, with all deliveries expected to be operational by the second quarter of 2028.
How could Google become a partner?
If Anthropic defaults, Google could assume the lease. Under certain conditions, it could also pay a termination fee to acquire a stake in Raylan Data, the company operating the project.
The stake would be calculated by dividing Google’s payment by the project’s total development and construction costs, including land, infrastructure, equipment, and financing. For example, a payment equivalent to 30 percent of the total cost could secure a 30 percent stake in the subsidiary. Any potential partnership would be in this project company, not in publicly traded TeraWulf shares.
There are conditions for assuming the lease during the first six years
Google’s backing for each of the three leased sections will take effect when the final data hall in that section is delivered. During the first six years that the backing is in effect, Google is generally required to assume the lease rather than terminate the agreement.
However, this rule has an exception if the Google AI chips installed in the halls can use less than half of the electricity allocated to the tenant. Google’s obligations will end if Anthropic itself, its parent company, or one of its affiliates maintains an investment-grade credit rating for at least three months.
Bitcoin miners are making room for AI
TeraWulf is increasingly looking to offer AI companies the energy and infrastructure capacity it built up through Bitcoin mining. The Anthropic lease is one of the largest deals in this transition.
While reimbursement of facility costs and interest terms have been central to the Riot–Anthropic deal in the same space, Google’s conditional lease and partnership rights are at the heart of the financing structure for the TeraWulf project.
Not investment advice.