Google is said to have promised to invest $44 billion in guarantees for data center leasing projects

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Deep Tide TechFlow news: On July 29, The Information reported that Google (GOOG.O) disclosed last week that it has agreed to assume third-party data center lease payments worth up to $44 billion in the event of tenant default. The figure is up from $6.5 billion as of the end of September, reflecting Google’s efforts to provide solutions to companies such as Anthropic with its alternative Nvidia AI chips.

It’s understood that Google has taken on these commitments—so-called “backstop guarantees”—to expand the scale of its TPU sales. Two people familiar with the matter said Google’s decision to take on these commitments was based on the consideration that the revenue generated from TPU sales would exceed the financial obligations incurred by guaranteeing leases for housing these chips.

One of the sources said company executives are confident that this financial calculation is beneficial to Alphabet. The report said Alphabet has provided lease guarantees for around 10 projects, totaling about 2.4 gigawatts of capacity. These projects are currently unfinished, meaning Alphabet’s guarantee measures have not yet taken effect.

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