Core Scientific has signed a multi-year contract to provide CoreWeave with up to 16 MW of data center infrastructure for AI and HPC workloads, with potential revenue in excess of $100 million.
Core Scientific, a leading provider of Bitcoin mining and digital infrastructure, has announced a multi-year contract to supply up to 16 MW of data center infrastructure to CoreWeave, a dedicated GPU cloud provider. The potential revenue associated with this long-term hosting contract is estimated at over $100 million.
Under the agreement, Core Scientific will deliver the capacity at its new data center in Austin, Texas, which was previously occupied by Hewlett Packard. This facility will be used to expand Core Scientific’s hosting business to include high-performance computing (HPC) alongside existing Bitcoin mining operations.
CoreWeave CEO Michael Intrator praised the strong business relationship between the two companies, citing Core Scientific’s responsiveness, high-uptime data centers, professionalism and trust as key factors in the collaboration. Both companies share a core belief in accelerating innovation, which this partnership aims to achieve in fast-growing applications within AI and HPC.
Core Scientific CEO Adam Sullivan emphasized the company’s mission to accelerate digital innovation by scaling high-value computing quickly, efficiently and responsibly. The new Austin data center will support CoreWeave’s near-term requirements while expanding and diversifying Core Scientific’s portfolio of hosting customers through Bitcoin mining and dedicated GPU cloud computing.
The two companies have a history of collaboration, with Core Scientific hosting CoreWeave’s GPU processing hardware in its data centers from 2019 to 2022. Core Scientific operates more than 300 MW of energy-powered infrastructure near major metropolitan areas, with access to high-bandwidth telecommunications infrastructure, both of which are required to support GPU cloud computing workloads.
Sullivan highlighted Core Scientific’s ability to shift its asset base to maximize revenue and profits, thanks to its diversified business model and leading scale. The company can continue to operate as a low-cost bitcoin miner while expanding its hosting customer base and diversifying its revenue streams.
As of January 31, 2024, Core Scientific operates seven data centers in five US states with a total operating capacity of 724 MW. The company’s growth plan includes a 372 MW expansion of its Bitcoin mining infrastructure across its two Texas data centers, which equates to more than 20 exahashes of mining capacity. Core Scientific consistently delivers a higher hash utilization rate than its North American peer group and Bitcoin miners at scale.
This partnership between Core Scientific and CoreWeave demonstrates the growing demand for HPC and AI infrastructure, as well as the potential for diversification in the digital infrastructure industry. As more companies look to harness the power of GPU computing and AI, collaborations like this are likely to become more common, driving innovation and growth in the sector.
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