Core Scientific announces $1.2B data center expansion as stock rises

Core Scientific, a Nasdaq-listed crypto mining firm, announced a $1.2 billion data center expansion.

The company's stock price experienced an increase following this announcement.

The expansion agreement is with CoreWeave, an AI Hyperscaler, for increased data center capacity in Denton, Texas.

Shares of Core Scientific rose 12.29% during after-hours trading.

The stock had closed up 2.66% prior to the after-hours activity.

Core Scientific CEO Adam Sullivan stated that the expansion will establish "one of the largest GPU supercomputers in North America."

The expansion will add 70 megawatts (MW) to the Denton site.

This will bring the total critical IT load to 260 MW.

Core Scientific's total contracted high-performance computing (HPC) infrastructure with CoreWeave would then expand to approximately 590 MW across six sites.

The potential cumulative revenue from the partnership is estimated to exceed $10 billion.

Core Scientific's collaboration with CoreWeave is part of its strategy to develop HPC projects.

These projects will power advanced AI and other low-latency workloads.

Competing firms, such as Riot Platforms, are also focusing on growing their AI and HPC sectors.

Core Scientific plans to allocate 900 MW of its contracted power for HPC hosting.

The remaining 400 MW will support the company's Bitcoin (CRYPTO:BTC) mining business.

Core Scientific reported a total revenue of $510.7 million in 2024.

The company's net loss for the year was $1.3 billion.

"[Net loss] increased by $1.1 billion driven primarily by a net $1.4 billion mark-to-market adjustment on our warrants and other contingent value rights comprising a $1.5 billion increase in the fair value of warrant liabilities," the company said.