Core Scientific and CoreWeave announce $1.2B expansion in Texas to power AI growth
Core Scientific has announced a $1.2 billion expansion of its Denton, Texas, data center in partnership with artificial intelligence-focused cloud provider CoreWeave.
According to Core Scientific’s Feb. 26 press release, the agreement adds 70 megawatts of contracted power, bringing the site’s total critical information technology load to 260 MW. Across six locations, CoreWeave now has 590 MW of infrastructure contracted with Core Scientific, reflecting the rising demand for AI and general processing unit-powered computing.
Core Scientific chief executive officer Adam Sullivan noted that the expansion will strengthen the company’s position as a leader in AI-focused digital infrastructure.
“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 (BTC) miners look for alternative revenue sources amid higher energy costs and the 2024 halving event which slashed miner rewards by half. With billions in projected cumulative revenue from CoreWeave, Core Scientific is betting on AI and high-performance computing as key drivers of growth.
The company expects $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 strengthen 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.
