Google Provides Credit Backstop for $19 Billion Kentucky Data Center Project

Google has entered into credit support agreements to backstop Anthropic’s lease obligations at the Justified Data Campus in Hawesville, Kentucky. This arrangement supports approximately $19 billion in contracted lease commitments and is intended to facilitate favorable long-term debt financing for the developer, TeraWulf. The backstop allows Google to assume lease obligations or pay a termination fee in the event of an Anthropic payment default or insolvency.

The agreements mandate that Anthropic utilize only Google-approved tensor processing units for accelerator operations throughout the lease term. Google is restricted from exercising lease-termination rights during the first six years, provided the installed hardware meets specific power consumption thresholds. These terms grant Google significant oversight regarding the facility's technical configuration and risk mitigation.

TeraWulf has simultaneously finalized a construction agreement with Fluor Enterprises for three campus buildings, covering engineering, procurement, and commissioning. While the project aims for phased service delivery between late 2027 and mid-2028, final project debt and guaranteed maximum construction pricing remain subject to ongoing development. The developer’s revenue model remains contingent upon the successful delivery of data halls to trigger Anthropic’s rent obligations.