Google Backstops TeraWulf's $19 Billion of Anthropic Leases at Its Kentucky Campus, but Shares Slip

TeraWulf WULF said Google agreed to backstop certain of Anthropic's obligations under three leases at its Justified Data Campus in Hawesville, Kentucky, which together carry about $19 billion of contracted lease commitments over 20-year terms. According to TeraWulf's filing, the support comes through three credit support agreements, one per building, and gives Google the option to pay rent due if Anthropic defaults. The size of the backstop was not disclosed.

The structure is aimed at financing rather than demand. TeraWulf described Google's role as contractual credit support for anticipated debt financing, noting that Alphabet's senior unsecured debt is rated AA+ by S&P and Aa2 by Moody's, and said it strengthens its ability to pursue competitive long-term debt. The company also executed a definitive construction agreement with Fluor. The campus covers about 401 MW across three buildings, with delivery phased from late 2027 through the second quarter of 2028, and 24/7 Wall St. put development cost at $4 billion to $4.5 billion.

There are limits. The backstop becomes effective only at the commencement date of each lease's final data hall, so construction-period risk stays with TeraWulf and its lenders, and it terminates if Anthropic achieves and maintains investment grade credit ratings for at least three months. No debt amount or rate has been disclosed.

The news did not lift the stock. TeraWulf was down about 4% at midday and roughly 6.6% late in the session, per SentiSense's delayed quote, while Cipher Digital fell 18% and IREN 9%. 24/7 Wall St. tied the sector weakness to a month-long selloff on funding worries and to the Texas governor-elect's call for a moratorium on data center development, which bears on Cipher's and IREN's Texas sites; it also noted KBW cut its TeraWulf target to $20 from $29 on November 2 while keeping an Outperform rating.

The next checkpoints are TeraWulf's third-quarter report, scheduled for November 6, and the size and pricing of the project debt the Google support is meant to unlock. GOOGL takes on contingent exposure to Anthropic's lease obligations rather than a direct funding commitment.