Google is moving to support a large-scale data center development in Texas leased to Anthropic, as competition over artificial intelligence infrastructure continues to intensify. The project, operated by Nexus Data Centers, is expected to surpass $5 billion in its initial phase, with Google anticipated to provide construction loans, according to the Financial Times. A consortium of banks is also reportedly competing to arrange financing by the middle of the year.
Anthropic recently signed a lease for the 2,800-acre campus, which is part of a broader infrastructure arrangement the company has with Google. Construction is already underway, with early-stage debt financing provided by Eagle Point, a publicly traded closed-end investment company. The site forms a significant component of Anthropic’s expanding infrastructure footprint.
The facility is projected to deliver approximately 500 megawatts of capacity by late 2026, an amount roughly equivalent to powering 500,000 homes. The project also carries potential for expansion up to 7.7 gigawatts. Its location near major gas pipelines operated by companies including Enterprise Products Partners, Energy Transfer, and Atmos Energy allows the site to draw on on-site gas turbines for power.
Separately, Anthropic secured a legal victory on Thursday when a federal judge in San Francisco temporarily blocked the Pentagon from designating the company a national security risk. Judge Rita Lin granted a preliminary injunction, pausing a directive backed by President Donald Trump that had sought to halt federal use of Anthropic’s AI chatbot, Claude. The ruling came in response to a lawsuit filed by Anthropic itself.
In its lawsuit, Anthropic argued that Defense Secretary Pete Hegseth exceeded his authority by classifying the company as a supply chain risk. Judge Lin described the government’s actions as “arbitrary” and cautioned against labeling a US company a national security threat without a clear legal foundation. She also indicated that the government may have retaliated against Anthropic over its publicly stated positions, calling the measures a likely violation of First Amendment protections.
The legal dispute stems from a breakdown in negotiations between Anthropic and the Pentagon regarding military applications of its AI technology. Anthropic had resisted allowing its models to be deployed for lethal autonomous weapons or mass surveillance purposes, which led to a broader standoff with the administration. The company’s refusal to accommodate those use cases appears to have contributed to the government’s subsequent actions against it.
Despite the ban order, US military units reportedly used Claude during a major airstrike on Iran, according to earlier reporting. Military commands, including US Central Command in the Middle East, are said to have relied on the AI model for operational support even after the directive was issued. The situation underscores the growing role of AI tools in military operations and the complex legal and ethical questions surrounding their use.
Originally reported by CoinTelegraph.
