Google has signed credit support agreements for the construction of TeraWulf data centers. The American company TeraWulf used to mine Bitcoin, and now it is building computing capacity. It leases the sites under a contract with Anthropic worth about $19 billion.
What the credit support is. It is a promise by a large corporation to take on part of the payments if the tenant stops paying. That makes banks more comfortable lending money for construction. Anthropic is the developer of the Claude chatbot.
Why this matters to a trader. The deal adds another link to the chain that underpins the growth of US indices.
What exactly is being built?
This is the Justified campus in Kentucky with a capacity of about 401 MW. The computing there will serve Anthropic's tasks.
- about $19 billion - revenue from the long-term lease, according to TeraWulf CEO Paul Prager
- 20 years - the period over which this amount will come to the company
- about 401 MW - the capacity of the Justified campus
Why is Google here?
Google's role is credit support. The corporation takes on part of the risk on the lease payments. It is already under this guarantee that TeraWulf is raising debt financing for construction.
Without it, there would be no money. The mining company itself would not have raised such a sum. Lenders look to whoever ultimately pays for the capacity lease.
When will the money start flowing?
- End of 2027. They plan to start delivering capacity to the customer.
- Second quarter of 2028. Delivery is planned to be completed.
- The time gap. Money for construction is going in now, while contract revenue will begin more than a year from now.
What does this mean for a trader?
The scheme is repeating across the whole market. Big tech is paying for artificial intelligence infrastructure. The money goes to contractors and power companies, and former miners are turning into landlords of computing capacity.
That is why any news about a shift in timelines or a revision of leases in such a scheme affects several stocks in the S&P 500 and Nasdaq at once, not just the parties to the deal.
Key point: for a trader, this is another link in the chain that underpins the growth of US indices. Tech and power company reports are worth keeping next to the economic calendar.
Trading indices on AI headlines?
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