Google May Acquire Equity in TeraWulf Data Center Project If Anthropic Defaults

TechFlow news, November 5: According to CoinDesk, Google is backing the $19 billion data center lease between Anthropic and Bitcoin miner TeraWulf. If Anthropic fails to pay rent or enters bankruptcy, Google may take over the lease or, under certain conditions, pay a termination fee to acquire a partial equity stake in Raylan Data, a TeraWulf subsidiary operating the project.

The lease has a 20-year term and covers 401 MW of computing capacity at TeraWulf's Kentucky data center. The equity percentage Google acquires depends on the ratio of the termination fee to the project's total development and construction costs; the equity involved is in the project subsidiary rather than the publicly listed TeraWulf. The project is expected to begin delivering capacity at the end of 2027, with deliveries continuing through Q2 2028.

Source: TechFlow