Anthropic Wants the Generators. Google Is Putting $17 Billion Into Wyoming.

OnePWR had Caterpillar generator orders in for about two years by the time Anthropic came along. That head start was worth something to the company behind Claude. The Financial Times reported Sunday that Anthropic agreed to pay about $3.4 billion in a deal that gives it access to 1.7 gigawatts of gas-fired generating capacity. Put in a fresh order, and you could be waiting years for the equipment to show up,

The supplier, San Antonio-based OnePWR Solutions, was first going to sell Anthropic electricity before the AI company opted to take over the equipment orders. The deal reportedly includes engineering and construction work to install the generators. Reuters said it couldn’t independently verify the report, and neither company responded to its requests for comment.

OnePWR’s banker, Piper Sandler, says the power business sold for $3.4 billion. The buyer is listed simply as an AI lab. Stifel managing director Arash Nazhad told the Financial Times what AI companies get out of owning the equipment:

“By owning some of their power infrastructure and having the capabilities in-house, companies believe they can better protect themselves against disruptions beyond their control.”

Getting the generators is one bill. Keeping them fed is another, and Anthropic warned in its IPO filing that the cost of gas and getting it to the site could go up, with no cap on those costs.

By Thursday, Google had put a number on what it plans to spend near Cheyenne. Its first Wyoming data center represents a $17 billion investment. On Friday, Crusoe said Google had acquired the site it had been developing with Tallgrass Energy. Crusoe had already worked on picking the site, getting approvals, and figuring out how to power it. The purchase price was undisclosed.

Natural gas is doing a fair bit of the work in Wyoming, too. Google plans to buy power from gas generators run by Tallgrass and Black Hills Energy. It’s also signed a power purchase agreement with American Electric Power for a 702-megawatt project that uses natural gas to run fuel cells, with plans to capture and store carbon dioxide nearby.

Seventeen billion dollars will get your attention. If you live near Cheyenne, you might be more interested in what Google’s Steve Walter, vice president of global infrastructure and energy, had to say about your electric bill:

“We will pay for 100% of the power we use, and … we’ll cover the infrastructure needs directly driven by our growth.”

The county and its school district stand to collect hundreds of millions in property taxes, by Google’s estimate. The company says it will cool the facility with air to put less pressure on the local water supply. Those are commitments and projections local officials can ask about as the project moves along.

I made this point last week when Google announced its plans for Malaysia. If a developer comes to your town and needs new power lines, ask who’s writing the check. In Wyoming, Google has put its name on the answer.

There’s plenty to like here. A company wants to put $17 billion into Wyoming and is lining up power to serve the project. Another saw a long wait for generators and found a way to buy equipment already on order. American companies are still willing to spend real money building here, and American natural gas is helping them do it.

Editor's Note: Do you enjoy RedState's conservative reporting exposing the radical left and woke media? Support our work so we can keep bringing you the truth.

Join RedState VIP and use promo code FIGHT to receive 60% off your membership.