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Anthropic spends $3.4 billion on gas turbines for AI power

Anthropic is spending $3.4 billion to purchase natural gas turbines that will generate up to 1.7 gigawatts of electricity for its data centers in the United States.

Anthropic is spending $3.4 billion on natural gas turbines to avoid the AI power crisis
File photo Anthropic is spending $3.4 billion on natural gas turbines to avoid the AI power crisis Photo: TechRadar

Company buys Caterpillar generators

Anthropic is purchasing Caterpillar equipment capable of producing up to 1.7 gigawatts of power according to a Financial Times report. Securing enough power has grown harder, so this purchase signals a shift away from the firm's earlier habit of leasing computing resources. Powering data centers that host Claude and rival platforms, the generators can provide significant electrical energy to lessen reliance on public utility grids.

Industry faces power shortages

Linking fresh installations to current power grids may require years, forcing firms to seek other methods for obtaining resources. Because they enable operators to generate power on their own instead of relying solely on public utility grids, natural gas generators present one choice. Yet reports indicate that natural gas turbine order backlogs stretch until the early 2030s, making the acquisition of such machinery a difficult endeavor.

Other tech firms follow suit

Google, Amazon, Microsoft, and Meta have revealed intentions to build major gas-fueled plants designed to back up their computing systems. According to Arash Nazhad, who serves as the managing director and leads clean energy and power efforts at Stifel, possessing portions of power infrastructure offers protection from unforeseen disruptions. Increasing gas output raises environmental worries, specifically regarding land disruption, emissions, and the effects of higher fossil fuel use.

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