Google (GOOGL) to Back a New Data Center in Texas that Anthropic Will Use

Google GOOGL -2.08% ▼ is reportedly backing a massive new data center project in Texas that will be used by Anthropic. According to the Financial Times, Google is helping finance a project worth more than $5 billion through Nexus Data Centers, with construction loans expected to be finalized soon. The site spans about 2,800 acres and is expected to deliver around 500 megawatts of capacity by late 2026, with plans to scale up significantly over time.

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Importantly, the facility is being built near major gas pipelines, which allows Nexus to power it using its own gas turbines instead of relying heavily on the public power grid. As a result, the data center can avoid high electricity costs during peak demand and maintain more consistent performance. As AI workloads continue to grow, energy access and cost control are becoming major advantages, which makes this setup especially important.

Moreover, this project deepens the relationship between Google and Anthropic. Notably, Google already provides Anthropic with access to its custom TPU chips through Google Cloud, which are used to train large language models. In return, this helps strengthen Google’s Vertex AI platform while giving Anthropic the scale and performance it needs. So overall, this financing move is not just about one facility, but about building a long-term AI ecosystem where both companies benefit from closer integration.

Are GOOGL Shares a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 26 Buys and six Holds assigned in the past three months. Furthermore, the average GOOGL price target of $376.57 per share implies 37% upside potential.

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