AI Data Center in Texas Secures $1.3 Billion Private Credit Loan
AI-generated context summary requested by a Free News Reader user. Sourced via Gemini from publicly available information — no paywalled content was accessed.
You hit a paywall. Here’s the context on this topic based on publicly available information. We did not access any paywalled content. View original article.
AI Data Center in Texas Secures $1.3 Billion Private Credit Loan
- Eagle Point Credit Management LLC is providing a roughly $1.3 billion private credit loan for a large AI data center in Hubbard, Texas, which will be anchored by Anthropic PBC.
- This private credit loan is part of a larger $16 billion project-finance package for developer Nexus Data Centers, with banks including Morgan Stanley leading the senior debt portion and Google guaranteeing parts of it.
Full Summary — powered by AI
A significant private credit loan of approximately $1.3 billion has been secured by Eagle Point Credit Management LLC for an expansive artificial intelligence (AI) data center currently under construction in Hubbard, Texas. This facility, located about 70 miles south of Dallas, is set to be primarily occupied by AI company Anthropic PBC.
The $1.3 billion loan is a component of a much larger $16 billion project-finance package for Nexus Data Centers, the developer behind the 2,900-acre campus. This substantial funding aims to complete the construction of the multi-phase campus, which will feature its own gas-fired power plant to ensure a self-sufficient electricity supply. Eagle Point’s financing is structured as a mezzanine or “HoldCo” loan, which is a riskier layer of debt compared to the senior debt, typically offering higher returns.
A consortium of banks, led by Morgan Stanley, is overseeing the approximately $15 billion senior debt portion of the overall package. Google has played a crucial role in facilitating this financing by providing guarantees for portions of Anthropic’s long-term lease and power commitments, thereby reducing risk for senior lenders. In return for its support, Google is expected to acquire an equity stake of about 20% in the data center and power project. The campus will utilize Google’s Tensor Processing Units (TPUs), with Broadcom also participating in financing these chips.
Construction on the first building at the Nexus Apex campus reportedly began in January 2026, with completion anticipated by October 2027. A second building’s construction commenced in June 2026, targeting completion by January 2028. This project highlights the increasing demand for massive computing power for AI development and the complex financing structures emerging to support this growth.