TeraWulf has signed credit support agreements with Google LLC to help it raise debt for the data centres it is building for Anthropic in Hawesville, Kentucky. The company also signed a definitive construction contract with engineering firm Fluor for three data centre buildings at the site.
In its announcement on 4 November, TeraWulf said the agreements were made “in connection with debt financing supporting approximately $19 billion of contracted lease commitments with Anthropic, PBC” at its Justified Data Campus. The TeraWulf Google backstop does not mean Google is lending the money. Google is promising to step in on the leases in certain cases, which should make the debt easier and cheaper to raise.
In brief
- Google will backstop TeraWulf’s Anthropic leases at Hawesville, Kentucky, which total about $19bn in contracted commitments.
- Google is not a lender; it would step in only if Anthropic fails to pay or becomes insolvent.
- Fluor will build three data centre buildings, with completions expected from late 2027 to the second quarter of 2028.
How the backstop works
The site is planned for about 401 MW of critical IT load, under a 20-year lease with Anthropic signed in July 2026. TeraWulf has signed three credit support agreements with Google, according to its Form 8-K filing.
The filing sets out what happens if Anthropic misses payments or becomes insolvent. Google may pay the rent and take over the lease, or pay a termination fee, after which it may take an equity stake in Raylan, the TeraWulf subsidiary involved. The backstop starts when the final data hall under each lease begins operating, and it ends if Anthropic holds investment-grade credit ratings for at least three months.
Google’s parent Alphabet has senior unsecured debt rated AA+ by S&P and Aa2 by Moody’s. Lenders will be weighing that credit, not just Anthropic’s. The $19bn is the value of the lease commitments, not money from Google, and TeraWulf has not yet disclosed how much debt it plans to raise.
The Fluor contract
TeraWulf’s agreement with Fluor is a definitive engineering, procurement and construction (EPC) contract “on a GMP-basis”, building on a limited notice to proceed issued in March 2026. GMP stands for guaranteed maximum price. TeraWulf said: “Guaranteed maximum pricing is being established in accordance with the agreement as engineering and procurement progress.” The contract includes open-book cost reporting.
Phased ready-for-service completions are “expected to begin in late 2027 and continue through the second quarter of 2028”, the company said. Chief executive Paul Prager said: “Fluor gives us the ability to scale execution without building a global engineering and construction organization internally.”
Why the structure matters
Prager said: “We structured our Anthropic leases from the outset to address counterparty credit, financing costs and capital requirements.” He added that “Google’s credit support strengthens our ability to secure competitive project financing, while Fluor’s engineering and construction capabilities expand our capacity to execute at scale.”
Chief financial officer Patrick Fleury said: “Cost of capital is fundamental to infrastructure development.” He added: “Strong investment-grade credit support strengthens the project’s financing profile and our ability to pursue competitive long-term debt, reinforcing our focus on disciplined capital allocation and attractive risk-adjusted returns.”
The point is cost. The exit clause implies Anthropic does not yet hold the investment-grade ratings that would end the backstop, so lenders would normally charge more to fund buildings that depend on its rent. A backstop from a company with Alphabet’s ratings reduces that risk, which should lower the interest rate. The exit clause shows the backstop is meant to be temporary: once Anthropic’s own credit is strong enough, Google’s support falls away.
The deal also shows how AI companies are paying for computing capacity. Anthropic has turned to former bitcoin miners with large power connections, including TeraWulf and, according to The Information, IREN, and is reportedly in talks over an Alberta campus. TeraWulf has previously been expanding its Muskie campus power. Google’s role here is that of a guarantor that lowers the cost of capital, not a funder, and the main open question is how much debt TeraWulf raises and on what terms.
Sources
- TeraWulf: Google credit backstop and Fluor EPC agreement (4 November 2026)
- TeraWulf Form 8-K (SEC filing)
Related stories
- TeraWulf’s Muskie campus: contracted power to 1 GW, pending approval
- Anthropic Reportedly Has an Unannounced Multiyear Cloud Deal With IREN, The Information Says
- Anthropic in Talks to Lease Beacon’s Alberta Data Centre Campus
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