Google disclosed last week that it has agreed to cover as much as $44 billion in third-party data center lease payments if tenants default, according to a report by The Information cited by BlockBeats on July 29. The figure marks a sharp increase from $6.5 billion as of the end of September. The report said the move reflects Google’s push to offer companies including Anthropic an alternative to Nvidia AI chips through its TPU lineup. Google has taken on what the report described as lease “backstop” commitments to help expand TPU sales. Two sources said the company made those commitments on the view that revenue from TPU sales would exceed the financial obligations tied to guaranteeing the data center leases needed to house the chips. One of the sources said executives believed the financial math worked in Alphabet’s favor. The report added that Alphabet has provided lease guarantees for roughly 10 projects totaling about 2.4 gigawatts of capacity. None of those projects has been completed, meaning the guarantees have not yet taken effect.
Google disclosed last week that it has agreed to assume up to $44 billion in third-party data center lease payments if tenants default, according to The Information in a report cited by BlockBeats on July 29.
That amount was up from $6.5 billion as of the end of September. The report said the increase reflects Google’s effort to supply companies including Anthropic with an alternative to Nvidia AI chips.
According to the report, Google has taken on these commitments, described as lease backstops, to expand sales of its Tensor Processing Units, or TPUs. Two sources said the company made the commitments based on the view that revenue from TPU sales would exceed the financial obligations created by guaranteeing data center leases needed to house the chips.
One of the sources said company executives were confident that the financial calculation worked in Alphabet’s favor.
The report added that Alphabet has provided lease guarantees for about 10 projects representing roughly 2.4 gigawatts of capacity. Those projects are still unfinished, which means Alphabet’s guarantees have not yet taken effect.
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