Anthropic Spends $3.4 Billion on Gas Turbines Because the Grid Cannot Wait

Anthropic is buying about $3.4 billion worth of natural gas turbines, according to reports by the Financial Times and TechCrunch, a rare step into owning physical infrastructure for a company that has largely rented the computing power it runs on.

The generators, made by Caterpillar, can produce up to 1.7 gigawatts of electricity, TechCrunch reported on Monday, citing the Financial Times. They were originally ordered by the equipment supplier OnePWR about two years ago, but OnePWR could not secure the financing to complete the purchase. Anthropic had planned to buy the equipment through OnePWR and instead dealt directly with Caterpillar, TechCrunch said.

The reports as summarized by TechCrunch did not include a statement from Anthropic, Caterpillar or OnePWR. The closing date, the number of turbines, the price per unit and the location where they would be installed were not disclosed. TechCrunch said it was unclear why OnePWR had been unable to raise the money.

The purchase departs from Anthropic's usual approach. In a filing in May, the company disclosed that it pays xAI, now a subsidiary of SpaceX, $1.25 billion a month through May 2029 for computing capacity. The same filing said more agreements of that kind were likely. TechCrunch noted that the company has generally avoided buying physical infrastructure and has preferred to rent.

"We expect to enter into additional similar services contracts." – Anthropic filing, as quoted by TechCrunch

Electricity supply has become a central constraint for AI developers. According to TechCrunch, waiting lists for gas turbines run into the early 2030s, and the queues to connect new projects to the power grid can be just as long. Taking over equipment that is already on order avoids part of that wait. TechCrunch described the purchase as a last resort and said Anthropic may also have wanted to keep the capacity from a competitor. Anthropic has not commented on that suggestion.

Other large technology companies are pursuing similar plans. Google, Amazon, Microsoft and Meta have each announced plans for large gas-fired power plants to supply their data centers directly, TechCrunch reported. The outlet said the buildout has given new momentum to hydraulic fracturing, and that data centers in the United States alone could consume more natural gas than Germany and Japan combined by 2035 if planned projects go ahead.

Fuel costs are the main financial risk. TechCrunch cited an unnamed analyst who expects gas prices could more than triple in some markets by the end of the decade. If that happens, TechCrunch wrote, Anthropic "might have a serious case of buyer's remorse." The company, which TechCrunch said plans to go public this year, has not said how it will use the turbines. The reports do not say where the equipment will be installed or when it will be delivered.

The deal follows other large infrastructure commitments by Anthropic, including its A$32 billion Australian data center agreement with Zerra DC. Together, the agreements show how far AI companies are now going to secure electricity as well as chips.