Core Scientific has announced a massive $1.2 billion expansion of its Denton, Texas, data center in partnership with AI-focused cloud provider CoreWeave. This strategic move aims to strengthen its position as a leader in high-performance computing and artificial intelligence (AI) infrastructure.
Expanding AI Infrastructure in Texas
According to Core Scientific’s February 26 press release, the agreement will add 70 megawatts (MW) of contracted power to the Denton facility, increasing its total critical IT load to 260 MW. Across six locations, CoreWeave now has 590 MW of infrastructure contracted with Core Scientific, underlining the surging demand for AI and GPU-powered computing.
Core Scientific CEO Adam Sullivan emphasized the importance of this expansion in advancing AI infrastructure in North America. “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,” said Sullivan.
A Shift Toward AI and High-Performance Computing
As Bitcoin miners search for alternative revenue streams amid rising energy costs and the 2024 Bitcoin halving event, Core Scientific has increasingly shifted its focus toward AI-driven computing. This move aligns with its long-term vision of diversifying its operations beyond cryptocurrency mining.
The partnership with CoreWeave is expected to generate substantial revenue, with Core Scientific projecting $10.2 billion in total earnings over a 12-year contract. Under the terms of the agreement, Core Scientific will invest $104 million in capital expenditures, while CoreWeave will cover additional costs. The contract also includes two optional five-year renewal extensions, ensuring long-term collaboration in AI infrastructure.
Future Expansion and Growth Plans
Core Scientific plans to allocate 400 MW of its 1.3 gigawatts of contracted power for Bitcoin mining, while dedicating 900 MW for high-performance computing (HPC) hosting. To further strengthen its foothold in the data center sector, the company is actively exploring new locations to expand its AI and cloud computing capabilities.
This expansion marks a significant step in the evolution of AI-focused digital infrastructure, cementing Core Scientific’s and CoreWeave’s role in powering the future of AI-driven computing.
