Anthropic is spending $3.4 billion on natural gas turbines, a striking move for an AI developer that has generally preferred to rent computing capacity rather than own the physical infrastructure behind it. The generators, manufactured by Caterpillar, can produce up to 1.7 gigawatts of electricity.
The company, which plans to go public this year, is acquiring units that equipment supplier OnePWR had ordered roughly two years ago but could not finance. Anthropic had intended to buy the turbines from OnePWR and ultimately went directly to Caterpillar, the manufacturer. It is unclear why OnePWR was unable to close the financing, given that Anthropic appeared to be a ready customer.
The decision to buy rather than rent marks a shift in strategy. In its S-1 filing in May, Anthropic disclosed that it pays SpaceX subsidiary xAI $1.25 billion per month through May 2029 to use xAI’s computing power, and the company said it expected to enter into additional similar services contracts — more deals to rent compute rather than build it.
But as demand for compute ramps up, the market for power has grown increasingly uncertain, which may have forced Anthropic’s hand. The backlog for natural gas turbines stretches into the early 2030s, and queues to connect to the electrical grid can be just as long. Against that backdrop, the purchase looks like a last resort — and one that keeps the generating capacity under Anthropic’s control rather than leaving it available to a competitor.
Hyperscalers race to build their own power
Anthropic is joining a broader buying spree. Google, Amazon, Microsoft and Meta have all announced plans to build massive natural gas power plants that will supply their data centers on site, rather than drawing electricity from the public grid.
That buildout has given a second wind to fracking, the drilling method used to extract natural gas from underground rock. If the construction proceeds as planned, U.S. data centers alone could consume more natural gas than Germany and Japan combined by 2035.
The reliance on natural gas carries its own risks. It exposes the largest technology companies to price swings in fuel markets, and one analyst expects prices could more than triple by the end of the decade in some markets. If that happens, Anthropic’s $3.4 billion bet on turbines could turn into a case of buyer’s remorse.