TOKENICATION_ is your reliable source for the latest news and analysis on cryptocurrencies. We provide up-to-date information on Bitcoin, Ethereum, and other digital currencies to keep you informed about the latest trends and help you make informed decisions.
Date: 2025-02-27 04:04:32
Core Scientific has revealed plans for a $1.2 billion enlargement of its data center in Denton, Texas, in collaboration with CoreWeave, a cloud provider specializing in artificial intelligence.
As stated in Core Scientific's Feb. 26 press release, this partnership adds 70 megawatts of power under contract, increasing the site's total critical information technology load to 260 MW. With six locations, CoreWeave now has 590 MW of infrastructure contracted with Core Scientific, indicating a growing demand for AI and general processing unit-powered computing.
Adam Sullivan, the CEO of Core Scientific, pointed out that this expansion will solidify the company's standing as a frontrunner in digital infrastructure for AI applications.
"By enhancing our capacity in Denton, we're constructing one of the largest GPU supercomputers in North America — reinforcing Core Scientific’s leadership in delivering high-density, high-performance digital infrastructure."
- Adam Sullivan, CEO of Core Scientific
Read More: "Today's Surge: Understanding KAITO's Over 40% Gain"
Core Scientific has been transitioning some of its computing resources towards AI as Bitcoin (BTC) miners seek alternative income sources due to increased energy costs and the 2024 halving event, which cut miner rewards by half. With projected cumulative revenue in billions from CoreWeave, Core Scientific is banking on AI and high-performance computing as primary growth drivers.
The company anticipates $10.2 billion in total revenue over 12-year contract terms. Under this agreement, Core Scientific will provide $104 million in capital expenditures, while CoreWeave will cover additional costs. Thanks to the agreement's two optional five-year renewal options, Core Scientific will have a long-term stake in AI infrastructure.
Core Scientific intends to utilize 400 MW of its 1.3 gigawatts of contracted power for Bitcoin mining activities and 900 MW for HPC hosting. To establish itself as a significant player in the data center sector, Core Scientific is also actively seeking new locations to expand its AI and cloud computing capabilities.