Google Expands TPU Supply with $43.8 Billion Data Center Lease Guarantee

Google is utilizing a $43.8 billion data center lease guarantee to expand its supply of AI semiconductor Tensor Processing Units (TPUs). According to Alphabet's Q2 2026 report, the maximum potential payout for credit derivatives related to data centers was $43.8 billion as of June 30. Google provides guarantees of approximately $44 billion in a manner that supports lease payments in the event that third-party data center tenants fail to meet their obligations. Instead of constructing all data centers directly, Google guarantees the financing of data center and cloud service providers while supplying TPUs, software, and cloud services. It is increasing TPU usage capacity in data centers by providing infrastructure to AI companies like Anthropic. As of June 30, Alphabet's long-term debt book value was $98.2 billion, and in June, it also entered into short-term lease agreements worth $5.8 billion. Anthropic has signed a contract with Google and Broadcom to expand next-generation TPU capacity, which is expected to be operational starting in 2027. Blackstone and Google are establishing a TPU cloud company and have committed to an initial equity investment of $5 billion to operate a capacity of 500 megawatts by 2027. The situation remains challenging for TPUs to replace NVIDIA GPUs. Some TPU data center projects include former Bitcoin miners transitioning to AI computing infrastructure.