Anthropic Buys $3.4 Billion in Natural Gas Turbines to Fuel AI Growth

OPA WIRE, Nov 9 (OPA) — Artificial intelligence firm Anthropic is spending $3.4 billion on natural gas turbines from manufacturer Caterpillar to secure dedicated energy supplies, marking a departure from its historical practice of renting infrastructure. The generators are capable of producing up to 1.7 gigawatts of electricity, providing a vital power source as electrical grid connection queues stretch into the early 2030s.

The equipment was originally ordered by supplier OnePWR, which failed to secure financing to complete the purchase. Rather than risk the generating capacity falling to competitors, Anthropic bypassed the intermediary to deal directly with Caterpillar. The company, which is planning to go public this year, filed an S-1 document in May revealing a $1.25 billion monthly contract with xAI for computing power through May 2029.

Technology giants including Google, Amazon, Microsoft, and Meta have increasingly turned to on-site natural gas power plants to bypass burdened public electrical grids. This infrastructure surge has accelerated domestic fracking operations while raising long-term concerns over fuel price volatility and environmental impacts.

Industry analysts project that United States data centers could consume more natural gas than Germany and Japan combined by 2035. While the heavy investment guarantees power for near-term operations, prolonged reliance on fossil fuels exposes hyperscalers to substantial commodity price fluctuations through the end of the decade.