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Core Scientific Expands Texas Data Center with $1.2 Billion Partnership
Core Scientific has announced a significant expansion of its Denton, Texas, data center in partnership with CoreWeave, a leading artificial intelligence-focused cloud provider. The $1.2 billion expansion adds 70 megawatts of contracted power to the site, bringing the total critical information technology load to 260 MW.
Strengthening AI-Focused Digital Infrastructure
The agreement reflects the rising demand for artificial intelligence (AI) and general processing unit-powered computing. CoreWeave now has 590 MW of infrastructure contracted with Core Scientific across six locations.
“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, noted that the expansion will strengthen the company’s position as a leader in AI-focused digital infrastructure.
Shift to AI Amid Higher Energy Costs
Core Scientific has been shifting part of its computing resources toward AI, as Bitcoin 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.
Key Highlights of the Partnership
- Core Scientific will fund $104 million in capital expenditures.
- CoreWeave will cover additional costs.
- Two optional five-year renewal options provide Core Scientific with a long-term stake in AI infrastructure.
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. Core Scientific is also actively looking for new locations to increase its AI and cloud computing capabilities.
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