Core Scientific (CORZ) Stock Rises Following Major Expansion Announcement
Core Scientific, a prominent player in the data center and bitcoin mining industry, witnessed a remarkable surge of over 11% in its stock price during after-hours trading on Wednesday. This uptick follows the company’s announcement of an ambitious $1.2 billion expansion plan for its data center in Denton, Texas, in collaboration with CoreWeave. This expansion aims to bolster support for artificial intelligence (AI) and high-performance cloud computing (HPC).
According to a recent statement, “The additional 70 MW [megawatts] of contracted power at the Denton facility will elevate the total critical IT load to approximately 260 MW.” The agreement further enhances CoreWeave’s total contracted HPC infrastructure with Core Scientific, bringing the total to about 590 MW across six different sites. The partnership is strategically aligned with CoreWeave’s increasing need for robust, high-density infrastructure to facilitate NVIDIA GPU operations.
This expansion is a continuation of the collaborative efforts between Core Scientific and CoreWeave, which focuses on the large-scale deployment of advanced computing solutions. Core Scientific has also indicated that it is “actively seeking additional sites to expand its HPC hosting capacity,” which underscores the surging demand for data centers capable of supporting the immense computing power required for HPC and AI applications.
In the context of the current market landscape, “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 statement elaborated.
Moreover, as the competition within the mining industry intensifies—especially following the recent halving event and escalating energy costs—bitcoin miners are increasingly diversifying their operations by reallocating some of their computing power toward AI initiatives. This shift aims to create new revenue streams and adapt to the evolving technological landscape.
CoreWeave, recognized as a cloud provider with a specialization in AI and GPU-based workloads, has been rapidly scaling its infrastructure to meet the burgeoning demand from enterprises seeking advanced computing capabilities.
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