“Some data center facilities will rely on dedicated, on-site natural gas power generation, with Anthropic bearing fuel costs on an uncapped, cost-reimbursement basis.”
“Renewables and nuclear power may not be available in the quantities or at the times we need them.”
Anthropic said in its registration statement (Form S-1) filed with the U.S. Securities and Exchange Commission (SEC) that “some of our planned data center facilities will rely on dedicated, on-site natural gas power generation.”
Because of long waits to connect to the power grid, some facilities will operate independently, generating their own electricity off-grid. Anthropic will cover the fuel costs on an “uncapped, cost-reimbursement basis.” The company also wrote that “gas prices may increase” if data center operators compete for gas in the same region.
Anthropic filed an amended registration statement on the 2nd and is pursuing a Nasdaq listing later this month.
◆ “Renewables may not be available when needed”
Anthropic said that power sources such as solar, wind, batteries, nuclear and geothermal energy “may not be available in the quantities or at the times we need.” It also noted that environmental standards for power generation “are subject to change as government priorities evolve.”
According to the U.S. Energy Information Administration, natural gas is expected to account for 40% of U.S. electricity generation from 2025 to 2027. The calculation appears to be that connecting to the grid can take years, renewables may not be ready in time, and gas turbines are what can be brought online immediately.
The registration statement does not identify which facilities will use gas-fired power. It names a $50 billion data center deal with Fluidstack covering facilities in Texas and New York.
British data center publication DCD, citing the Financial Times, reported that Anthropic signed a lease in March for the Nexus campus in Hubbard, Texas, to be built next to a gas pipeline. The first phase will have a capacity of 500 megawatts, with the campus potentially reaching 7.7 gigawatts. The report also said the company is in talks over the Cedar Creek campus in Texas, which would use gas turbines and have 710 megawatts of generation capacity.
◆ Climate risks listed only as a “cost”
Climate change was also listed as a risk factor. The registration statement said that “the physical effects of climate change may increase our operating costs over time,” noting that rising temperatures could require more electricity and water to cool equipment. It also said that “water for cooling is scarce in some regions.”
SpaceX did not mention climate change in its initial registration statement, but later added water shortages as a risk factor. Anthropic included the issue from the outset.
But something is missing: the registration statement does not disclose the greenhouse gas emissions of its data centers. It makes no mention of the carbon dioxide and methane emitted by gas-fired power plants, either. Climate risks are described only as costs Anthropic may have to bear; the impact Anthropic could have on the climate is not addressed.
◆ “Public controversy and regulatory scrutiny” acknowledged; listing planned for this month
Anthropic said data center development has prompted “public controversy and regulatory scrutiny” over environmental impacts, land use and water consumption. It also warned that efforts to secure power could face regulatory barriers if they are seen as affecting electricity bills or the environment.
The company added that investors who believe its ESG policies are inadequate may be reluctant to invest. New York State has paused permits for new data centers of 50 megawatts or more for up to a year. In the midterm elections on the 3rd, Democratic candidates who had pledged data center moratoriums won gubernatorial races in Texas, Georgia and Ohio. Texas and New York are among the states where Fluidstack facilities are planned.
In February, Anthropic CEO Dario Amodei pledged that the company would pay the higher electricity bills and grid expansion costs caused by its data centers, saying, “Anthropic should bear the cost of running our models, not ordinary Americans.”
However, the pledge covers only three company-owned facilities: one in Mitchell County, Texas; one in Niagara County, New York; and one in southeastern Louisiana. Capacity leased from Amazon, Google and Microsoft is excluded.