Nexus Data Centers is in advanced talks to raise $15 billion, including a $14 billion bridge loan led by Morgan Stanley, for a Hubbard, Texas campus tied to Anthropic. Google is offering financial guarantees for Anthropic's leases and power commitments in exchange for a 20% equity stake. The site will feature a 1.6-gigawatt natural-gas power plant and will be equipped with Google-Broadcom co-designed chips funded via a separate Broadcom vendor-financing agreement.
Nexus $15 billion loan
- ▪Nexus Data Centers is in advanced talks to raise $15 billion for a Texas campus tied to Anthropic
- ▪A bank group led by Morgan Stanley is discussing the financing package, which includes a $14 billion bridge loan and a revolving credit facility
AI data center demand
- ▪Big Tech companies are investing billions of dollars into artificial intelligence data centers and computing power because demand continues to outstrip supply
Google guarantees Anthropic leases
- ▪Google is expected to receive an equity stake of about 20% in the data-center and power project in return for its financial support
- ▪Google has agreed to guarantee billions of dollars of Anthropic's lease and power-payment commitments if Anthropic defaults, limited to the minimum level required by lenders
Texas facility power plant
- ▪The Google guarantees cover four data-center leases signed by Anthropic and related power-purchase agreements for electricity from an on-site plant
- ▪The proposed Hubbard, Texas project includes a natural-gas-fired power plant capable of producing 1.6 gigawatts of electricity
Anthropic chip procurement arrangement
- ▪Anthropic plans to equip the Texas site with tensor processing units co-designed by Google and Broadcom
- ▪The tensor processing units for the Texas site would be funded through a separate vendor-financing agreement between Anthropic and Broadcom
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