Core Scientific Expands Hosting Contract With CoreWeave

According to Cointelegraph, Bitcoin miner Core Scientific has announced an expansion of its hosting contract with artificial intelligence computing firm CoreWeave. The extended agreement, revealed on October 22, adds 120 megawatts (MW) of power to CoreWeave’s high-performance computing (HPC) operations, bringing the total to 500 MW across six Core Scientific sites. This revised partnership is projected to generate up to $8.7 billion in revenue over the next 12 years for Core Scientific. Core Scientific’s stock, CORZ, has seen a 5.1% increase, trading at $13.48 on the Nasdaq exchange. The necessary site modifications to accommodate the additional capacity are expected to begin in the second half of 2025, with the infrastructure set to become operational in the second half of 2026. All capital investments required to upgrade Core Scientific’s data centers will be funded by CoreWeave, with $180 million in infrastructure investments to be credited against hosting fees. The expanded contract also includes provisions for two potential five-year renewal terms. CoreWeave, a specialized cloud infrastructure provider, focuses on computing solutions for AI, machine learning, and other compute-intensive applications. This partnership will enable the company to expand its infrastructure. For Core Scientific, the amended deal broadens its AI services and diversifies its revenue streams, coming just a few months after the company emerged from bankruptcy due to heavy exposure to Bitcoin (BTC) price fluctuations in 2022. With 1.2 gigawatts of total power, Core Scientific plans to allocate about 700 MW for HPC hosting, while the remaining 500 MW will continue to be used for its Bitcoin mining operations. “There is significant demand for infrastructure to support next-generation compute workloads,” said Adam Sullivan, Core Scientific’s CEO. He added that the company is working to expand power allocations at some of its existing data centers to increase capacity for HPC hosting while also evaluating new sites to expand business opportunities. The companies first announced their partnership in June 2024, with a 12-year agreement worth $3.5 billion. At that time, the infrastructure provided to CoreWeave accounted for about 18% of Core Scientific’s total operational capacity.