CoreWeave Expands AI Hosting at Core Scientific to 270MW

CoreWeave, the NVIDIA-backed $19 billion AI cloud computing provider, has signed another contract with Core Scientific (NASDAQ: CORZ) to increase its AI hosting capacity by 70 megawatts at the Bitcoin mining firm.

Bitcoin mining and data center operator Core Scientific said in a release on Tuesday that CoreWeave has exercised its first option for additional infrastructure as part of the original 200-megawatt deal the two companies entered into last month.

In early June, Core Scientific first revealed the 200 MW AI hosting deal with CoreWeave, noting that the contract provided CoreWeave with “options over the next 60 to 90 days to further expand its hosting footprint with Core Scientific at additional select sites.”

For the newly signed capacity, Core Scientific will modify a total of 100 MW of its existing infrastructure to house CoreWeave’s NVIDIA GPUs for high-performance computing.

The site modifications are set to begin in the second half of 2024, with the load expected to be operational in the second half of 2025. Core Scientific claims that the 12-year HPC contract will add an additional $100 million in projected annual revenue.

Overall, Core Scientific expects to operate 270 MW of AI hosting capacity for CoreWeave by the end of 2025, forecasting a total revenue of $3.5 billion over the next 12 years.

Similar to the initial contract, CoreWeave will fund the capital expenditure for the site modifications for the additional 70 MW, which will be reimbursed as hosting fees once the project is online.

Additionally, Core Scientific noted that after the 70 MW expansion, CoreWeave still has the option to increase its infrastructure by another 230 MW at other Core Scientific sites.

Core Scientific’s stock jumped 10% during pre-market hours on Tuesday. Following the news of the initial 200 MW contract, Core Scientific’s share price more than doubled from $5 in early June to new yearly highs above $10.30 within 10 days.