Google is set to offer financial backing for the development of a multibillion-dollar data center project in Texas, which will be leased to the prominent artificial intelligence (AI) firm Anthropic, as the demand for AI infrastructure to support increasingly sophisticated models grows.

As per a report referencing “individuals familiar with the situation,” the 2,800-acre data center campus in Texas may surpass $5 billion in its initial phase, with Google’s loan for construction being a component of the tech giant’s larger infrastructure agreement with Anthropic.

A group of banks is vying to provide the financing by mid-year for the initial phase, while Google’s involvement is expected to enable the project to secure funding at a reduced cost, thanks to its robust credit rating, sources informed the FT.

Construction has reportedly commenced on the site, which is anticipated to deliver approximately 500 megawatts of capacity by late 2026, sufficient to power around half a million U.S. homes, with the possibility of expansion to 7.7 gigawatts. Additionally, it is situated near significant gas pipelines, allowing it to utilize onsite gas turbines.

The news of Google’s increasing infrastructure support for Anthropic arises as the latter company finds itself in a standoff with the U.S. government regarding the use of its AI models by state and military entities.

Until recently, Anthropic had a reported $200 million contract with the U.S. military to implement its technology within the Pentagon’s classified networks. In February, this relationship began to deteriorate when Anthropic stated it “cannot in good conscience” fulfill a request from the Department of War (DoW) to eliminate safety measures from its AI models, including those related to mass domestic surveillance.

The company has also reportedly voiced concerns regarding the application of its products in the abduction of Venezuelan President Nicolás Maduro by U.S. military forces in January.

In response, U.S. Secretary of War Pete Hegseth adopted a firm position and, on February 27, characterized Anthropic as a “supply chain risk,” a label typically reserved for U.S. adversaries. He mandated that, effective immediately, no contractor, supplier, or partner engaged with the U.S. military is permitted to conduct any commercial activities with Anthropic.

Anthropic pledged to contest this decision in court, and on the same day the Financial Times reported on Google’s increasing infrastructure connections with Anthropic, U.S. federal judge Rita Lin from the Northern District of California temporarily prohibited U.S. agencies from enforcing the supply chain risk classification. She argued that the resulting “financial and reputational harm” to Anthropic could potentially “cripple” the company.

Not one to avoid controversy, Anthropic’s recent expansion of its AI infrastructure also coincides with the leaks of its upcoming AI model, dubbed “Mythos,” which led to a decline in cybersecurity stocks due to concerns that this powerful AI could serve as a hacker’s ideal tool.

For artificial intelligence (AI) to function effectively within legal boundaries and prosper amid increasing challenges, it must incorporate an enterprise blockchain system that guarantees data input quality and ownership—enabling it to secure data while also ensuring the immutability of that data.