Google Backstops Anthropic's $19 Billion Kentucky Lease; Tenant Must Use Google TPUs

What happened

TeraWulf filed a Form 8-K with the US SEC on Nov 4, disclosing that Google has signed three credit support agreements covering three data halls, CB-1, CB-2 and CB-3, at Anthropic's Justified campus in Hawesville, Kentucky. The agreements were signed by five parties: Raylan Data, TeraWulf, Justified DataPower, Anthropic and Google.

Under the agreements, if Anthropic defaults on rent or enters insolvency proceedings, Google may pay the rent due and assume the lease, or pay a termination fee and acquire an equity interest in Raylan Data; Google may also defer its choice for a set period while paying rent due. The termination fee amortizes over a defined term, and the support ends once Anthropic holds investment-grade ratings for at least three months.

Section 2.k of the agreement's exhibit states that the tenant and its affiliates may use only Google-approved tensor processing units (TPUs) as accelerator processors in the premises. TeraWulf also signed a definitive engineering, procurement and construction agreement with Fluor the same day; the data halls are to be delivered in phases from late 2027 through the second quarter of 2028, with rent starting on delivery of each hall.

Key facts

1. Disclosure: TeraWulf filed a Form 8-K on Nov 4, with a press release and a form of the credit support agreement attached
2. Campus and lease: a 20-year lease signed in July 2026 for the Justified campus in Hawesville, about 401 MW of critical IT load
3. Lease value: TeraWulf's press release puts contracted lease commitments at about $19 billion
4. Signatories: Raylan Data, TeraWulf, Justified DataPower, Anthropic and Google
5. Google's options: if Anthropic defaults or becomes insolvent, Google may pay rent due and assume the lease, or pay a termination fee and acquire an equity interest in Raylan
6. Deferral: Google may defer its choice for a set period, paying rent due during the deferral
7. Termination fee: amortizes over a defined term
8. TPU clause: exhibit section 2.k requires the tenant and its affiliates to use only Google-approved TPUs as accelerators
9. Delivery: phased delivery from late 2027 through the second quarter of 2028; rent starts on delivery of each data hall
10. End of support and construction: the backstop ends once Anthropic holds investment-grade ratings for at least three months; Fluor signed the EPC agreement for the three buildings the same day