Anthropic's $3.4 billion deal for gas-fired generators will let the AI company bypass wait times of about six years for new turbines by taking over existing Caterpillar orders from Texas supplier OnePWR Solutions, and has drawn criticism over the environmental cost of the power it will produce.
The agreement, first reported by the Financial Times, was reached in late September, according to Reuters. Anthropic is not buying OnePWR itself and no OnePWR employees transferred, but the deal covers 1.7 gigawatts of generators plus the engineering and construction work needed to install them. Reuters reported in September that Anthropic expects to spend more than $500 billion over the next 10 years building AI infrastructure.
By stepping into orders OnePWR placed with Caterpillar roughly two years ago, Anthropic avoids starting from scratch and waiting for Caterpillar to fit a new order into its production schedule. Manufacturers are struggling to keep up with demand: global turbine orders have reportedly exceeded 100 gigawatts while manufacturing capacity is an estimated 60 to 70 gigawatts, and average delivery times in the United States have reached six years, with some prospective orders extending into 2030 or 2031.
Other AI companies have also turned to gas-fired generation for data centre projects. xAI installed eight converted General Electric jet turbines at a data centre in Mississippi, with a potential combined output of 400 megawatts, a deployment the Southern Environmental Law Center has challenged over its emissions permits. For OpenAI's first Stargate data centre in Abilene, Texas, Crusoe, the company developing the facility, acquired 29 GE Vernova turbines capable of generating up to 986 megawatts.
Anthropic is taking a different path by stepping into OnePWR's existing orders rather than buying new equipment. The move comes amid an upsurge in demand for used and refurbished turbines, including retired jet engines converted to generate electricity, though those alternatives have limitations including maintenance requirements, remaining service life and suitability for continuous operations. The agreement also provides installation capabilities, meaning Anthropic is securing more than the generators themselves.
"This is pretty grim—these kinds of generators are terrible for the environment," Shakeel Hashim, founder of ReadTransformer, tweeted, commenting on the purchase. His reaction points to an issue Anthropic will have to contend with as it expands its power infrastructure: securing electricity quickly does not remove the environmental costs of generating it.
Analysis
Why This Matters
- AI companies are racing to secure power as grid connections lag, and turbine makers cannot keep up, with global orders above 100 gigawatts against an estimated 60 to 70 gigawatts of manufacturing capacity.
- The deal lets Anthropic sidestep six-year delivery times, but it does not remove the environmental costs of gas-fired generation, which is drawing scrutiny.
- It signals a new pattern in which AI firms buy existing equipment orders, used turbines and converted jet engines instead of waiting for new hardware.
Background
AI data centres require enormous amounts of electricity, often faster than new grid capacity or new power equipment can be delivered. Companies including Anthropic, OpenAI and xAI have turned to gas-fired generation to bring facilities online quickly, a strategy that has attracted environmental criticism. Manufacturers of large gas turbines and generators are struggling to keep up with demand, especially from AI companies.
What to Watch
- Whether Anthropic's generator installations face emissions-permit challenges similar to the one the Southern Environmental Law Center brought against xAI's Mississippi site.
- How quickly Anthropic can deploy the 1.7 gigawatts of capacity it has secured through the deal.
- Whether other AI companies follow by acquiring existing orders, further squeezing the market for used and refurbished turbines.
Checked
12 claims in this story checked against 2 sources: 12 supported.
Show each claim
- SupportedAnthropic’s $3.4 billion generator deal skips a six-year wait.Latest from Tom's Hardware: “Anthropic skips six-year waitlist with massive $3.4 billion gas turbine generator deal.”
- SupportedHashim called the generators “grim” and said they are terrible for the environment.Latest from Tom's Hardware: ““This is pretty grim—these kinds of generators are terrible for the environment.” Shakeel Hashim, founder of ReadTransformer, tweeted, commenting on Anthropic's purchase.”
- SupportedAnthropic is taking over existing Caterpillar orders placed by OnePWR Solutions.US Top News and Analysis: “The AI startup bought commitments for 1.7 gigawatts of heavy-duty generators in late September from OnePWR Solutions, a San Antonio, Texas-based equipment supplier, the report said.”
- SupportedGlobal turbine orders exceed manufacturing capacity.Latest from Tom's Hardware: “Notably, global turbine orders have reportedly exceeded 100GW, while manufacturing capacity stands at an estimated 60GW to 70GW.”
- SupportedThe Financial Times reported the deal.US Top News and Analysis: “Anthropic has struck a deal worth about $3.4 billion to secure gas-fired power generators for data centers, the Financial Times reported on Sunday.”
- SupportedThe agreement was reached in late September.Latest from Tom's Hardware: “According to Reuters , the agreement was reached in late September, and also covers the engineering and construction work needed to install the equipment.”
- SupportedAnthropic did not buy OnePWR, and no OnePWR employees transferred to Anthropic.US Top News and Analysis: “Anthropic did not acquire OnePWR itself, and none of the supplier's employees transferred to the AI startup, but the deal included engineering and construction capabilities needed to install the generators”
- SupportedThe agreement covers 1.7 gigawatts of generators and installation engineering and construction work.Latest from Tom's Hardware: “Anthropic, the AI company behind Claude, has agreed to spend $3.4 billion securing 1.7 gigawatts (GW) of gas-fired generators for its AI data centres, taking over equipment orders originally placed with Caterpillar by Texas-based supplier OnePWR Solutions. According to Reuters , the agreement was reached in late September, and also covers the engineering and construction work needed to install the equipment.”
- SupportedReuters reported that Anthropic expects to spend more than $500 billion over the next 10 years building AI infrastructure.US Top News and Analysis: “Reuters reported in September that Anthropic expects to spend more than $500 billion over the next 10 years building AI infrastructure.”
- SupportedGlobal turbine orders have reportedly exceeded 100 gigawatts, against estimated manufacturing capacity of 60 to 70 gigawatts.Latest from Tom's Hardware: “Notably, global turbine orders have reportedly exceeded 100GW, while manufacturing capacity stands at an estimated 60GW to 70GW.”
- SupportedAverage US delivery times have reached six years, and some prospective orders extend into 2030 or 2031.Latest from Tom's Hardware: “Average delivery times in the U.S. have reached six years, with some prospective orders extending into 2030 or 2031.”
- SupportedxAI installed eight converted General Electric jet turbines at a Mississippi data centre, with potential combined output of 400 megawatts.Latest from Tom's Hardware: “Recently, xAI installed eight converted General Electric jet turbines at a data center in Mississippi . Each unit can generate up to 50MW, giving the installation a potential combined output of 400MW.”
