Core Scientific recently announced a lucrative partnership with CoreWeave that is expected to significantly boost its revenue forecast to $8.7 billion over the next 12 years. This move positions Core Scientific among the top data operators in the United States and has already caused a surge in its stock price.
The expanded hosting agreement with CoreWeave will see Core Scientific providing an additional 120 megawatts of hosting capacity for its High-Performance Computing (HPC) operations. This extension is projected to bring in an extra $2 billion in revenue on top of the $6.7 billion already anticipated from previous contracts with CoreWeave, totaling $8.7 billion in cumulative revenue.
To accommodate this increased hosting capacity, Core Scientific plans to modify its infrastructure by the second half of 2025. This modification will allow the company to host CoreWeave’s NVIDIA Graphics Processing Units (GPUs) by providing the necessary critical IT load, which includes power for essential systems like servers and communication switches.
CoreWeave will cover the $180 million capital investment required for these upgrades, with the investment being credited against hosting fees. The contract also includes provisions for two potential five-year renewal periods, ensuring a long-term partnership between the two companies.
The operations are expected to commence in the second half of 2026, at which point Core Scientific will be offering 500 MW of HPC infrastructure to CoreWeave. This move solidifies Core Scientific’s position as one of the largest publicly traded data center operators in the US.
Core Scientific CEO Adam Sullivan emphasized the importance of this partnership, noting that it aligns with the company’s strategy to support high-performance computing workloads. He highlighted the growing demand for infrastructure to meet next-generation compute needs and expressed confidence in Core Scientific’s ability to meet that demand.
In addition to this partnership, Core Scientific is also working on expanding power capacity at its existing data centers and exploring new sites to further enhance its HPC hosting capabilities. This strategic growth plan positions Core Scientific for continued success in the rapidly evolving data center industry.
Following the announcement of this partnership, Core Scientific’s stock (CORZ) experienced a 5.1% surge, reaching $13.48 according to data from Yahoo Finance. This positive market response reflects investor confidence in Core Scientific’s strategic initiatives and growth potential in the data center sector.