Core Scientific, CoreWeave Invest $1.2B in Texas AI Expansion

Core Scientific and CoreWeave have announced a significant expansion in Texas, investing $1.2 billion to boost artificial intelligence (AI) growth. The partnership involves the expansion of Core Scientific's Denton, Texas, data center, adding 70 megawatts of contracted power, bringing the site's total critical information technology load to 260 MW. This expansion reflects the increasing demand for AI and general processing unit (GPU)-powered computing.

Core Scientific's chief executive officer, Adam Sullivan, expressed his enthusiasm about the expansion, stating that it 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," Sullivan said.

Core Scientific has been diversifying its computing resources, shifting part of its focus towards AI, as Bitcoin miners seek alternative revenue sources amid higher energy costs and the 2024 halving event, which reduced miner rewards by half. The company is betting on AI and high-performance computing as key drivers of growth, with billions in projected cumulative revenue from CoreWeave.

The company expects to generate $10.2 billion in total revenue over the 12-year contract terms. Under 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 allocate 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, the company is actively exploring new locations to enhance its AI and cloud computing capabilities.