Anthropic to Spend $3.4 Billion on Natural Gas Generators

Anthropic is spending $3.4 billion on natural gas generators as electricity shortages threaten the expansion of AI infrastructure in the United States, according to fetched article text citing a Financial Times report. The equipment from Caterpillar is capable of generating up to 1.7 gigawatts of electricity.

The purchase marks a shift from Anthropic’s previous preference for renting computing infrastructure. The generators could supply electricity to data centers supporting Claude and other services. Connecting new facilities to existing electricity networks can take years, and the fetched text says the backlog for natural gas turbine orders reportedly extends into the early 2030s.

Google, Amazon, Microsoft and Meta have also announced plans involving large gas-powered facilities for computing infrastructure. “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,” said Arash Nazhad, a managing director and head of clean energy and power at Stifel.

The shift has revived interest in fracking, while raising environmental concerns including land disturbance, emissions and increased fossil fuel consumption. One projection cited in the fetched text suggests US data centers could consume more natural gas than Germany and Japan combined by 2035. Analysts expect prices in some markets to more than triple by 2030, potentially raising operating costs for companies relying on gas-fired electricity. Anthropic’s spending also leaves it exposed to fuel and facility maintenance costs.