Core Scientific (CORZ) Stock Surge

Core Scientific (CORZ) stock surged over 11% in after-market trading on Wednesday after announcing a $1.2 billion expansion of its data center in Denton, Texas, in partnership with CoreWeave. This expansion aims to support artificial intelligence (AI) and high-performance cloud computing (HPC).

The new plan includes an additional 70 MW of contracted power at the Denton site, raising the total critical IT load to approximately 260 MW.

According to the statement, the agreement boosts CoreWeave’s total contracted HPC infrastructure with Core Scientific to around 590 MW across six locations. This addition is intended to meet CoreWeave’s demand for strong, high-density infrastructure necessary for NVIDIA GPU operations.

This expansion builds on the firms’ existing partnership that focuses on deploying advanced computing solutions at scale. Core Scientific is “actively seeking additional sites to expand its HPC hosting capacity,” reflecting the rising demand for data centers capable of hosting computing power for HPC and AI machines.

With over $10 billion in potential cumulative revenue expected from CoreWeave, Core Scientific is strategically positioned to meet the increasing need for energy-dense, application-specific data centers.

Bitcoin miners are increasingly reallocating resources to AI to diversify their revenue streams amid fierce competition in the mining industry, especially after the recent halving event and climbing power costs.

CoreWeave, a cloud provider focused on AI and GPU-based workloads, has been rapidly developing its infrastructure to meet the rising demand from enterprises.

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