- Core Scientific partners with CoreWeave for a 12-year AI data center expansion, supplying 200 MW of infrastructure.
- The partnership is expected to generate over $3.5 billion in revenue, enhancing Core Scientific’s AI and Bitcoin mining operations.
Leading North American digital infrastructure company Core Scientific has partnered strategically with AI hyperscaler CoreWeave.
Under a number of 12-year long-term agreements, Core Scientific will provide about 200 MW of infrastructure to support CoreWeave’s high-performance computing (HPC) activities.
Tonight, we announced that Core Scientific will be providing an additional ~200 MW of infrastructure to host @CoreWeave #HPC services.
– ~200 MW of infrastructure for HPC compute
– Estimated to generate total cumulative revenue for Core Scientific of over $3.5 billion during the… pic.twitter.com/GWRaJuJdZs— Core Scientific (@Core_Scientific) June 4, 2024
AI Data Center Expansion
For Core Scientific, which is entering the AI data center market, this collaboration is a major turning point. The company wants to be at the forefront of bitcoin mining while taking advantage of growing prospects in AI computing.
The CEO of Core Scientific, Adam Sullivan, is upbeat about the revolutionary possibilities of this partnership.
He draws attention to the increasing requirement for high-power locations and the capacity of Core Scientific to satisfy client needs by emphasizing dependable and fast solutions that shorten the powering time when compared to new data center projects.
Provisions for Future Growth
The agreement with CoreWeave covers term extensions and additional growth after the first 12-year contracts.
With the possibility of ranking among the biggest in the sector, these clauses establish Core Scientific as a top data center operator in the US. Core Scientific expects this alliance to expand its revenue streams and boost its profits; over the first contract term, the HPC infrastructure is estimated to bring in over $3.5 billion.
Shifting Bitcoin Mining Capacity
To facilitate growth and continuity of the company, Core Scientific intends to allocate a portion of its Bitcoin mining power to this expansion. Following the company’s bankruptcy and reorganization, shares of the company started trading again on Nasdaq in January.
By April 2024, Core Scientific had achieved 20 exahashes of energized self-mining hash rate, having deployed S21 miners and temporarily powered up miners from earlier generations at data centers that could sustain their operations.
A cash flow boost allowed Core Scientific to start building 72 MW of infrastructure at its Denton, Texas, data center and pay off $19 million in mechanics’ lien debt. In keeping with its expansion goal, the company intends to add 372 MW, which will amount to over 20 exahashes of hash rate.
Bitcoin mining firms like Core Scientific have aggressively looked to increase their profits after the 50% reduction in miner incentives that occurred in April. Other mining companies, like Hut 8 and Bit Digital, have expanded their revenue sources into AI in keeping with this trend.
Significantly, Core Scientific recorded a net income of $210.7 million in the first quarter of 2023, a big improvement from a net loss of $388,000 in the same period of 2023.
On the other hand, ETHNews reports that El Salvador’s Bitcoin portfolio is now worth more than $354 million thanks to the geothermal energy from the Tecapa volcano.