Anthropic's IPO filing says its AI data centers lean on natural gas and warns of rising fuel and climate costs

What happened

Anthropic, the artificial intelligence company preparing to go public, filed an S-1 document with the US Securities and Exchange Commission on Monday, according to The Verge. In the filing, the company acknowledges that data centers are becoming more dependent on natural gas. The Verge reported that this leaves Anthropic's data center buildout exposed to higher fuel costs and existing supply chain constraints.

The filing also names climate change as a risk to the business. Anthropic says rising temperatures will push up its operating costs, including what it pays for electricity and for water used to cool servers, The Verge reported.

What the filing says about power

A tight market for electricity

"Competition for access to electrical supply and data center locations with adequate power availability is intense," Anthropic says in the filing, as quoted by The Verge. The company says some of its planned data centers rely on electricity from natural gas turbines located on-site.

Anthropic leases computing capacity from hyperscalers, the large cloud providers. The Verge noted that the company also announced a $50 billion plan last year to expand data centers in Texas and New York.

Competition for gas and pipelines

Anthropic expects more competition for natural gas and pipeline capacity as hyperscalers and cloud service providers race to build their own data centers. "This competition could drive up the price of natural gas," the company says, according to The Verge. The filing warns that without a secure gas supply and pipelines to carry it, Anthropic might have to delay or abandon planned data center projects.

The wider energy picture

Gas turbines in short supply

The Verge reported that the US is planning to build more fossil fuel generation capacity than it has in a decade as data centers demand more electricity. Gas already makes up 40 percent of the nation's power generation, the largest share of the US electricity mix.

A shortage of gas turbines is now slowing data center construction, according to The Verge. Some developers are installing gas engines on-site to avoid long waits to connect to power grids. Others are turning to simpler turbine technology because of manufacturer backlogs, which The Verge said makes on-site generation less efficient and more polluting.

Federal policy and air quality

The Verge reported that the Trump administration has sought to kill renewable energy projects and has tilted regulation in favor of fossil fuels. Trump claims fossil fuels are more important than solar and wind for powering data centers around the clock. The outlet also cited a recent Texas-based study that found data center electricity demand could wipe out decades of air quality gains over the next five years.

Utility bills and local pushback

Residents have successfully blocked dozens of proposed data centers across the US, The Verge reported. For more on those fights, see our look at what US data center opponents can learn from abroad.

Anthropic's filing acknowledges that worries about rising utility bills can interfere with a project. If its efforts to secure power are seen as affecting other customers or the grid, the company says, "regulators may impose conditions, standby charges, or other requirements intended to address such impacts." Anthropic adds that if regulators make data center developers pay more of the cost of new energy infrastructure, its own operating costs could rise.

The Verge noted that Americans are already feeling the effects of higher costs as utilities work to upgrade infrastructure and meet growing power demand. More coverage of artificial intelligence and data centers is available in our AI and tech section.

What to watch next

• Anthropic's planned move to go public following its S-1 filing with the SEC.
• Progress on the company's $50 billion data center expansion plan in Texas and New York.
• Whether the gas turbine shortage and manufacturer backlogs continue to slow data center construction.
• Whether regulators impose conditions or standby charges on data centers seen as affecting other utility customers.