Anthropic and Riot sign $28B AI data center deal in Texas

The Corsicana Campus Deal

Riot Platforms has entered into a 15-year agreement with Anthropic to develop a massive AI data center campus in Corsicana, Texas. The deal is valued at $28 billion and focuses on providing 910 megawatts of data center capacity. This partnership marks a significant expansion for Riot as it moves into the AI infrastructure space.

Under the terms of the agreement, the two companies will split responsibilities based on their core strengths. Riot owns the site and the electrical infrastructure, while Anthropic will be responsible for installing and running the actual computing equipment. This arrangement allows Riot to monetize its existing power capacity without having to manage the complex AI hardware operations itself.

The rollout of the campus is scheduled to happen in phases rather than all at once. The first phase of capacity is expected to be online in June 2027, which is also when Riot expects rental payments to begin. Subsequent phases are scheduled to run through July 2028, with receipts tied to specific construction and delivery milestones.

How the Revenue Works

Once the full project is operational, Riot expects to receive an average annual rent of about $1.8 billion over the initial 15-year term. However, this figure represents a gross rental expectation rather than a final net income forecast. The final amount Riot keeps will depend on several variables, including construction costs and specific reimbursement terms.

The agreement includes a mechanism where Anthropic can recover eligible facility costs by deducting them from future rent payments. These reimbursements carry an interest rate of 12% per year. Because these costs are tied to specific modules and phases, the deductions and interest will scale as the campus is built out and begins to earn revenue.

Riot's financial model for the project estimates total development costs at roughly $5.5 billion. Of that amount, about $1.8 billion is allocated to Riot's own site and electrical work, while up to $3.6 billion is earmarked for reimbursing Anthropic for its facilities. These figures are estimates and the actual reimbursements will be determined by the specific costs incurred during construction.

Funding and Bitcoin Sales

To fund this transition, Riot has already begun selling off a significant portion of its Bitcoin holdings. During the first nine months of 2026, the company sold 20,264 BTC for approximately $1.5 billion. These proceeds were primarily used to fund data center development and to repay a $200 million loan from Coinbase.

Riot has stated that it intends to continue selling substantially all of its newly mined Bitcoin to serve as a funding source for its infrastructure projects. The company currently holds 2,418 BTC as of late September. By treating its Bitcoin as a source of capital rather than a reserve to hold, Riot is prioritizing the physical expansion of its data center footprint.

The company does not currently plan to issue new shares to finance these projects. Instead, it expects to launch a formal financing process in 2027. Riot's current illustrations suggest that lenders may cover between 80% and 90% of project costs, which would leave the company needing to contribute between $500 million and $1.1 billion in cash.

Risks and Execution Hurdles

The project faces several execution risks, primarily centered on the availability of debt and the timing of construction. Because the first rental payments are tied to the June 2027 milestone, any delays in site preparation or electrical work could push back the start of revenue. Riot must successfully arrange substantial financing before these milestones are reached.

The final economics of the deal will also be shaped by the specific terms of the debt Riot secures in 2027. The company has not yet disclosed a target interest rate for the project debt, which will impact the overall profitability of the 15-year term. Furthermore, the actual amount of rent Riot retains will fluctuate based on the final eligible costs reimbursed to Anthropic.

For Riot, the deal represents a pivot toward a more stable, long-term rent stream from a major technology company. While it provides a clear path to diversify away from pure Bitcoin mining, it also loads the company with billions of dollars in construction obligations. The success of the deal depends on Riot's ability to manage these heavy infrastructure commitments while maintaining its mining operations.