Core Scientific has signed a multi-year agreement to provide CoreWeave with up to 16 MW of data center infrastructure for AI and HPC workloads, with potential revenue exceeding $100 million.
Core Scientific, a leading Bitcoin mining and digital infrastructure provider, announced a multi-year agreement to supply up to 16MW of data center infrastructure to CoreWeave, a specialized GPU cloud provider. Potential revenue associated with this long-term hosting agreement is estimated to exceed $100 million.
Under the agreement, Core Scientific will provide capacity at a new data center in Austin, Texas, previously occupied by Hewlett Packard. The facility will be used to expand Core Scientific’s hosting business to include high-performance computing (HPC) alongside its 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, expertise and trust as key elements of the collaboration. Both companies share a core belief in accelerating innovation, and this partnership aims to achieve this across fast-growing applications within AI and HPC.
Core Scientific CEO Adam Sullivan emphasized the company’s mission to accelerate digital transformation by scaling high-value computing quickly, efficiently and responsibly. The new Austin data center will support CoreWeave’s near-term needs while expanding and diversifying Core Scientific’s portfolio of hosting customers across Bitcoin mining and specialty 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 power infrastructure near major metropolitan areas with access to high-bandwidth communications infrastructure. Both are required to support GPU cloud computing workloads.
Sullivan highlighted Core Scientific’s ability to flexibly adjust its asset base to maximize revenue and profits thanks to its diverse business model and leading scale. It allows the company to expand its hosting customer base and diversify its revenue streams while continuing to operate as a low-cost Bitcoin miner.
As of January 31, 2024, Core Scientific operates seven data centers in five U.S. states with a total operating capacity of 724 MW. The company’s growth plans include expanding its Bitcoin mining infrastructure by 372 MW in two Texas data centers. This corresponds to a mining capacity of over 20 Exahash. Core Scientific has consistently delivered higher hash rate utilization compared to its North American peer group and larger Bitcoin miners.
This partnership between Core Scientific and CoreWeave demonstrates the growing demand for HPC and AI infrastructure and the potential for diversification within the digital infrastructure industry. As more companies look to harness the power of GPU computing and AI, collaborations like this are likely to become increasingly common, driving innovation and growth in the sector.
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