The expansion will significantly increase Core Scientific’s AI and cloud computing capacity and total projected revenue to $10.2 billion over 12-year contract terms.
The expansion will significantly increase Core Scientific’s AI and cloud computing capacity and total projected revenue to $10.2 billion over 12-year contract terms.
CoreWeave will leverage the expanded site for AI-focused workloads, strengthening its cloud infrastructure. Core Scientific is actively seeking additional sites to expand its HPC hosting capacity. Core Scientific (CORZ) stock surged more than 11% after-market on Wednesday after the data center and Bitcoin mining company said it was planning a $1.2 billion expansion of a data center in Denton, Texas, with CoreWeave, to support artificial intelligence (AI) and high-performance cloud computing (HPC). The 70 MW [megawatt] of additional contracted power at the Denton site increases the full critical IT load to approximately 260 MW,” according to a statement.
Core Scientific’s stock jumped after the company announced a \$1.2 billion expansion of its data center in Texas, working with CoreWeave to support growing demand for artificial intelligence (AI) and high-performance cloud computing (HPC). This deal will help CoreWeave run powerful computer systems, especially those using NVIDIA GPUs, and will bring Core Scientific’s total revenue from this partnership to over \$10 billion over 12 years. The new setup will use more electricity to handle more computing work, and Core Scientific is also looking for more places to build similar data centers. As Bitcoin mining becomes tougher and more expensive, companies like Core Scientific are now using their computer power for AI to make more money.
“The agreement increases CoreWeave’s total contracted HPC infrastructure with Core Scientific to approximately 590 MW across six sites. We believe this addition aligns with CoreWeave’s growing need for robust, high-density infrastructure to support NVIDIA GPU operations.”
The expansion builds on a partnership between the two firms, which focuses on deploying advanced computing solutions at scale. Core Scientific said that the company is “actively seeking additional sites to expand its HPC hosting capacity,” underpinning the growing demand for data centers that can host and support computing power for HPC and AI machines.
“With over $10 billion in potential cumulative revenue with CoreWeave, we believe Core Scientific is strategically positioned to capitalize on the growing demand for energy-dense, application-specific data center,” the statement said.
Bitcoin miners have been shifting some of their computing powers to AI to diversify their revenue sources, as the competition in the mining industry has become intense following the recent halving event and rising power costs.CoreWeave, a cloud provider specializing in AI and GPU-based workloads, has rapidly scaled its infrastructure to support growing enterprise demand.
