TeraWulf gets credit backstop from Google for Anthropic data-center project

Nov 4 (Reuters) - Data-center ‌developer TeraWulf said ​on ​Wednesday it has secured a credit backstop agreement with Alphabet's Google to support financing ‌needs for its data-center project with Claude creator ⁠Anthropic.

The company also announced an expanded agreement with construction and ‌engineering firm Fluor Enterprises for ‌the development of the data-center site in Hawesville, Kentucky.

The credit agreement with Google is the latest example ​of how major tech firms are providing multi-billion-dollar financial backstops and guarantees to help smaller AI ⁠companies, including neoclouds and data-center developers, fund the costly AI infrastructure build-out.

TeraWulf ​had in July signed a 20-year lease with Anthropic for data-center infrastructure. The deal is ​expected to generate about $19 billion ‌in contracted revenue for TeraWulf, which is among a group of companies that are ⁠shifting from bitcoin mining to providing critical AI infrastructure amid booming demand.

"Strong investment-grade credit support strengthens the project's financing profile ⁠and our ability to pursue competitive long-term debt," TeraWulf Chief ​Financial Officer Patrick Fleury said.

The campus is expected to support about 401 megawatts of critical IT load, with initial capacity expected ‌online in the second half of 2027.

TeraWulf shares were down about 3% in premarket ‌trading amid a broader slide in AI data-center stocks ⁠as investors assess the ‌possibility of tighter ​regulation after Democrats seized control of Congress.

(Reporting by Deborah Sophia in Bengaluru; Editing by Shilpi ‌Majumdar)

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