A Tale of Expansion: Core Scientific and CoreWeave Unite in a $1.2B Alliance

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In a most delightful turn of events, Core Scientific and CoreWeave have joined forces in a grand endeavour to expand their Denton, Texas, data center. The sum of this union? A staggering $1.2 billion!

According to Core Scientific’s recent press release, this partnership adds 70 megawatts of contracted power, bringing the site’s total critical information technology load to a whopping 260 MW. Across six locations, CoreWeave now boasts 590 MW of infrastructure contracted with Core Scientific, a testament to the ever-growing demand for AI and general processing unit-powered computing.

“By expanding our capacity in Denton, we’re building one of the largest GPU supercomputers in North America — reinforcing Core Scientific’s leadership in delivering high-density, high-performance digital infrastructure.”

— Adam Sullivan, Core Scientific CEO

Core Scientific has been shifting part of its computing resources toward AI, as Bitcoin miners seek alternative revenue sources amid higher energy costs and the dreaded 2024 halving event, which slashed miner rewards by half. With billions in projected cumulative revenue from CoreWeave, Core Scientific is placing its bets on AI and high-performance computing as key drivers of growth.

The company expects a staggering $10.2 billion in total revenue over 12-year contract terms. Under the agreement, Core Scientific will fund $104 million in capital expenditures, while CoreWeave will cover additional costs. Core Scientific will have a long-term stake in AI infrastructure thanks to the agreement’s two optional five-year renewal options.

The company intends to use 400 MW of its 1.3 gigawatts of contracted power for Bitcoin mining activities and 900 MW for HPC hosting. To further solidify its position as a significant player in the data center sector, Core Scientific is also actively looking for new locations to increase its AI and cloud computing capabilities.

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2025-02-27 07:17