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Date: 2025-02-26 23:08:58
Shares of Core Scientific (CORZ) rose by over 11% in after-hours trading on Wednesday following the announcement of a planned $1.2 billion expansion of a data center in Denton, Texas. The expansion aims to support artificial intelligence (AI) and high-performance cloud computing (HPC) in collaboration with CoreWeave, a data center and bitcoin mining firm.
"The additional 70 MW [megawatt] of contracted power at the Denton site raises the total critical IT load to roughly 260 MW," according to a press release.
"The agreement brings CoreWeave's total contracted HPC infrastructure with Core Scientific to approximately 590 MW across six sites. This addition aligns with CoreWeave's increasing need for robust, high-density infrastructure to support NVIDIA GPU operations."
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The expansion builds upon an existing partnership between the two firms, which aims to deploy advanced computing solutions on a large scale. Core Scientific stated that the company is "actively seeking additional sites to expand its HPC hosting capacity," reflecting the growing demand for data centers capable of hosting and supporting computing power for HPC and AI machines.
"With over $10 billion in potential cumulative revenue with CoreWeave, we believe Core Scientific is strategically positioned to capitalize on the growing demand for energy-dense, application-specific data centers," the press release stated.
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In response to the intense competition in the mining industry following the recent halving event and rising power costs, bitcoin miners have been diversifying their revenue sources by allocating some of their computing power to AI.
CoreWeave, a cloud provider specializing in AI and GPU-based workloads, has been rapidly expanding its infrastructure to meet the growing demand from enterprises.
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