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Anthropic joins AI’s natural gas frenzy, buys $3.4B worth of turbines
Anthropic is spending $3.4 billion on natural gas turbines, a major shift for a company that has generally rented computing infrastructure rather than owning physical assets. The purchase reflects how the race to secure electricity for AI data centres is tightening, with limited access to grid connections and generating equipment.
The Caterpillar generators, bought directly from the manufacturer after supplier OnePWR struggled to secure financing, can produce up to 1.7 gigawatts. Anthropic has also disclosed a deal to pay xAI $1.25 billion a month for computing capacity through May 2029. Other major technology firms are building gas-powered plants for data centres, while rising gas demand could expose companies to price swings and higher costs.
In short
- Anthropic is buying $3.4 billion of natural gas turbines.
- The generators can produce up to 1.7 gigawatts.
- The deal reflects growing competition for reliable power.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Securing turbines gives Anthropic greater control over the reliable electricity needed to train and run AI systems, as grid connections and generation equipment become scarce. Owning generation capacity could reduce dependence on constrained suppliers and help the company meet demand while supporting the wider development of AI services.
The case against
A $3.4 billion commitment to gas generation could lock Anthropic into fossil fuel infrastructure and expose it to volatile fuel costs as energy demand grows. The move may also add to emissions and compete for equipment and gas supplies, raising questions about whether the company is balancing rapid expansion with its environmental responsibilities.