Key Points
- Core Scientific is investing $1.2 billion in expanding its Denton, Texas data center in collaboration with CoreWeave.
- The expansion will increase the site’s total IT load to 260 MW and will strengthen Core Scientific’s position in AI-focused digital infrastructure.
Core Scientific has unveiled plans for a $1.2 billion expansion of its data center located in Denton, Texas. The expansion is being carried out in collaboration with CoreWeave, a company focused on providing cloud services for artificial intelligence (AI).
Details of the Expansion
According to the press release issued by Core Scientific on February 26, the expansion includes an additional 70 megawatts of contracted power. This will increase the site’s total critical IT load to 260 MW. Across six locations, CoreWeave now has 590 MW of infrastructure contracted with Core Scientific. This reflects the growing demand for AI and general processing unit-powered computing.
Adam Sullivan, the CEO of Core Scientific, stated that this expansion will further solidify the company’s standing as a leader in AI-focused digital infrastructure. He mentioned that the Denton expansion will result in one of the largest GPU supercomputers in North America.
Revenue and Growth Expectations
Core Scientific has been reallocating a portion of its computing resources towards AI. This is in response to Bitcoin miners seeking alternative revenue streams due to increasing energy costs and the 2024 halving event which cut miner rewards by half. With anticipated cumulative revenue in the billions from CoreWeave, Core Scientific is positioning AI and high-performance computing as key growth drivers.
The company is projecting $10.2 billion in total revenue over 12-year contract terms. As per the agreement, Core Scientific will fund $104 million in capital expenditures, while CoreWeave will cover additional costs. The agreement also includes two optional five-year renewal options, ensuring Core Scientific’s long-term stake in AI infrastructure.
Core Scientific plans to dedicate 400 MW of its 1.3 gigawatts of contracted power for Bitcoin mining activities and 900 MW for HPC hosting. To bolster its role in the data center sector, the company is actively seeking new locations to enhance its AI and cloud computing capabilities.