Anthropic has entered into a $35 billion cloud-computing agreement with Lambda, a cloud service provider backed by Nvidia, to secure computing capacity at a data center in Texas, according to reports.

The project is reportedly being developed in Nueces County by Hut 8, an AI data center operator that initially built its business around cryptocurrency mining. The facility is expected to have approximately 350 megawatts of capacity, adding significant infrastructure to meet Anthropic’s growing computing requirements.

Anthropic, Nvidia, Hut 8 and Lambda did not immediately respond to Reuters’ requests for comment made after regular business hours.

Demand for computing infrastructure has surged since the emergence of generative AI services, prompting technology companies to commit hundreds of billions of dollars to data centers equipped with advanced chips from Nvidia and other semiconductor manufacturers.

Anthropic, which is preparing for an initial public offering, has been rapidly expanding its computing capacity as it anticipates rising demand for its AI products. Its Claude Code AI coding tool has become an important part of its expanding product portfolio.

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Last week, Anthropic announced plans to invest $45 billion to lease AI cloud-computing resources from Nscale’s data center campus in West Virginia. The Lambda agreement will further provide Anthropic with access to Nvidia-powered computing resources to support the increasing demand for its Claude AI services.

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The Wall Street Journal, which first reported the Lambda agreement, said Nvidia would retain the lease for the Texas data center.

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Hut 8 announced in July that it had finalized a 15-year lease agreement with an investment-grade customer, with the contract carrying a base-term value of $19.6 billion. The Financial Times later reported that Nvidia was the lessee for Hut 8’s 1-gigawatt Beacon Point facility.

The latest agreement highlights the accelerating competition among AI companies to secure large-scale computing infrastructure as demand for advanced AI services continues to grow globally.