Core Scientific's $1.2B AI, HPC Expansion Boosts Shares 11%

Core Scientific (CORZ) shares surged over 11% in after-hours trading on Wednesday, following the company's announcement of a $1.2 billion expansion of its data center in Denton, Texas, in partnership with CoreWeave. The expansion aims to support artificial intelligence (AI) and high-performance cloud computing (HPC) initiatives.

The 70 MW of additional contracted power at the Denton site increases the full critical IT load to approximately 260 MW. This agreement increases CoreWeave’s total contracted HPC infrastructure with Core Scientific to around 590 MW across six sites, aligning with CoreWeave’s growing need for robust, high-density infrastructure to support NVIDIA GPU operations.

The expansion builds on an existing partnership between the two firms, focusing on deploying advanced computing solutions at scale. Core Scientific is actively seeking additional sites to expand its HPC hosting capacity, underscoring 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, Core Scientific believes it is strategically positioned to capitalize on the growing demand for energy-dense, application-specific data centers. Bitcoin miners have been shifting some of their computing power to AI to diversify their revenue sources, as competition in the mining industry has intensified following the recent halving event and rising power costs.

CoreWeave, a cloud provider specializing in AI and GPU-based workloads, has been rapidly scaling its infrastructure to support growing enterprise demand. The partnership with Core Scientific allows both companies to leverage their strengths and tap into the burgeoning AI and HPC markets.