Business
Core Scientific Announces New Contract with CoreWeave for Delivery of Approximately 70 MW of Additional Infrastructure to Host High-Performance Computing Operations
Marks Another Meaningful Step in Execution of Portfolio Diversification Strategy Increases Total Owned and Contracted Infrastructure Allocated for HPC
About this update from Core Scientific, Inc.
[{"type":"text","content":"\nMarks Another Meaningful Step in Execution of Portfolio Diversification Strategy\n\n\nIncreases Total Owned and Contracted Infrastructure Allocated for HPC Hosting to Approximately 270 MW\n\n\n AUSTIN, Texas--(BUSINESS WIRE)--\nCore Scientific, Inc. (NASDAQ: CORZ) (“Core Scientific” or the “Company”), one of the largest owners and operators of high-powered digital infrastructure for bitcoin mining and hosting services in North America, today announced that CoreWeave, the AI Hyperscaler, has exercised its first option to contract for additional infrastructure under the terms of its previously announced 200 megawatt (“MW”), 12-year high-performance computing (“HPC”) hosting contracts entered into with CoreWeave on June 3, 2024.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240625541641/en/Core Scientific is one of the largest owners and operators of high-powered digital infrastructure for bitcoin mining and hosting services in North America (Photo: Business Wire)\nUnder the terms of today’s announced agreement, Core Scientific will modify a total of 100 MW of its owned infrastructure to deliver approximately 70 MW to host CoreWeave’s NVIDIA GPUs for HPC operations. Site modifications are expected to begin in the second half of 2024, with operational status anticipated in the second half of 2025. This new 12-year HPC hosting contract will further increase Core Scientific’s exposure to contracted, multi-year, dollar-denominated revenue. From revenue to gross margin, the new contract with CoreWeave is expected to enhance earnings power and drive shareholder value, adding an additional $1.225 billion in projected cumulative revenue over the 12-year contract timeline to the more than $3.5 billion in projected cumulative revenue associated with previously announced contracts with CoreWeave.1\n\n\n“We are excited to build on our momentum and expand the scope of our HPC hosting business with significant additional infrastructure,” said Adam Sullivan, Core Scientific’s Chief Executive Officer. “The world is changing, and many data centers built in the last 20 years are not suitable to support future computing requirements. Core Scientific is well positioned to design for the future and build application-specific data centers (ASDCs), which are designed to support much high...