Core Scientific and AI-focused cloud provider CoreWeave have partnered to expand Core Scientific’s Denton, Texas, data center by $1.2 billion.
The agreement adds 70 megawatts of contracted power, increasing the site’s total critical information technology load to 260 MW, according to a press release issued by Core Scientific on February 26. As the need for AI and GPU-powered computing grows, CoreWeave has 590 MW of infrastructure contracted with Core Scientific across six locations.
CEO Adam Sullivan stated that the growth will solidify the business’s standing as a pioneer in AI-oriented digital infrastructure.
Core Scientific Partnership To Boost AI
A portion of the company’s computing resources have been directed toward artificial intelligence (AI) as Bitcoin miners seek out other sources of income in the face of rising energy prices and the 2024 halving event, which cut miner rewards in half. With CoreWeave expected to generate billions in total revenue over time, Scientific is placing a large bet on artificial intelligence and high-performance computing as significant growth engines.
Throughout the 12-year contract, the company anticipates total revenue of $10.2 billion. As per the agreement, CoreWeave will pay additional expenses, and Core Scientific will finance $104 million in capital expenditures. The agreement’s two optional five-year renewal options will give Core Scientific a long-term stake in AI infrastructure.
Of its 1.3 gigawatts of contracted power, the company plans to use 400 MW for Bitcoin mining and 900 MW for hosting HPCs. The company is also actively searching for new locations to expand its AI and cloud computing capabilities and solidify its position as a major player in the data center industry.
