Core Scientific’s stock surged over 11% in after-hours trading on Wednesday as the company revealed a $1.2 billion expansion of a data center in Denton, Texas, in partnership with CoreWeave to enhance capabilities in artificial intelligence (AI) and high-performance cloud computing (HPC).
The announcement stated, “The 70 MW of additional contracted power at the Denton site increases the full critical IT load to approximately 260 MW.”
The agreement aims to bolster CoreWeave’s total contracted HPC infrastructure with Core Scientific to approximately 590 MW across six locations, aligning with the increasing need for robust infrastructure to support NVIDIA GPU operations.
What to Know:
- The expansion will significantly augment Core Scientific’s resources for AI and cloud computing, projecting a total revenue of $10.2 billion over 12 years.
- CoreWeave will utilize the expanded site to enhance its AI workloads, strengthening its cloud infrastructure.
- Core Scientific is on the lookout for additional locations to increase its HPC hosting capacity.
The two companies are fostering a partnership focused on deploying advanced computing solutions at scale, responding to the rising demand for data centers capable of supporting powerful computing needs.
Investors are closely watching how this expansion positions Core Scientific to captivate the growing market opportunities in application-specific data centers, with potential revenues exceeding $10 billion partnered with CoreWeave.
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