Google is preparing to provide financial backing for a massive new data center project in Texas, responding to intensifying competition in artificial intelligence infrastructure. The facility, developed by Nexus Data Centers and leased by AI firm Anthropic, is projected to exceed $5 billion in its initial phase alone. Google is expected to contribute through construction loans, while multiple banks have joined in shaping the project’s financing structure.
Data center capacity and energy infrastructure in focus
Anthropic recently signed a lease for a sprawling, 2,800-acre campus—a move that deepens its broader infrastructure partnership with Google. Construction is already underway, with initial financing provided via debt instruments from publicly-traded investment firm Eagle Point. This signals significant institutional support behind the ambitious endeavor.
The facility is expected to reach about 500 megawatts of capacity by the end of 2026, an amount roughly equivalent to the electricity needs of 500,000 households. There are plans to scale the project up to 7.7 gigawatts in future phases, indicating the potential for far greater computational and energy output over the long term.
A key feature of the site is its proximity to major natural gas pipelines operated by companies like Enterprise Products Partners, Energy Transfer, and Atmos Energy. Leveraging access to these pipelines, the facility intends to generate power onsite through gas turbines. Experts believe this approach could provide the uninterrupted and scalable energy supply required by demanding AI systems.
Pentagon dispute and court intervention
Meanwhile, tensions between Anthropic and the U.S. Department of Defense have escalated to the courts. A federal judge in San Francisco has temporarily blocked the Pentagon from designating the company as a national security risk and halting public use of its AI tools. Judge Rita Lin ordered a preliminary injunction, pausing the government’s actions until the legal case is resolved.
Anthropic argued that Defense Secretary Pete Hegseth overstepped his authority by labeling the company as a supply chain risk. The court criticized the government’s action as “arbitrary,” warning of the dangers of branding an American company as a threat without a clear legal basis.
This dispute appears to have emerged after negotiations between Anthropic and the Pentagon broke down. Anthropic, it is noted, opposes the use of its AI models in lethal autonomous weapons or large-scale surveillance operations—a stance that has led to deeper disagreements with defense officials.
Founded in 2021, Anthropic is known as a technology company focused on AI safety and ethical usage. The firm has gained prominence with its conversational AI model, Claude, becoming a leading player in the sector. Its partnership with Google is particularly notable in the areas of infrastructure and cloud computing, further positioning both companies at the forefront of the AI race.
