# Core Scientific and CoreWeave Unite to Boost AI Development
Core Scientific is collaborating with CoreWeave, an AI cloud service provider, and allocating $1.2 billion to enlarge its data hub in Denton, Texas.
The agreement incorporates 70 megawatts of contracted electricity, elevating the site’s total IT load to 260 MW, according to a news statement from Core Scientific on February 26. CoreWeave now possesses 590 MW of infrastructure agreements with Core Scientific across six sites, demonstrating the escalating requirement for AI and general-purpose processing unit-driven computing.
Core Scientific CEO Adam Sullivan underscored that the augmentation will reinforce the company’s status as a vanguard in AI digital infrastructure.
> “By broadening our capacity in Denton, we are constructing one of the most extensive GPU supercomputers in North America, strengthening Core Scientific’s dominance in delivering high-density, high-performance digital infrastructure.”
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> – Adam Sullivan, CEO of Core Scientific
As Bitcoin (BTC) miners explore substitute income sources amidst elevated energy expenditures and the 2024 halving occurrence (which halves miner compensations), Core Scientific has been reallocating some of its computing resources to AI. With billions of dollars in cumulative income anticipated from CoreWeave, Core Scientific perceives AI and high-performance computing as crucial catalysts for expansion.
The company foresees total income of $10.2 billion over the 12-year contract duration. Under the arrangement, Core Scientific will allocate $104 million in capital expenditures, while CoreWeave will handle supplementary expenses. With two optional five-year renewal alternatives, Core Scientific will retain a lasting stake in AI infrastructure.
The company intends to utilize 400 MW of its 1.3 GW of contracted electricity for Bitcoin mining endeavors and 900 MW for HPC hosting. UPS Stock Could Reach a Five-Year Nadir
To reinforce its dominant stance in the data hub arena, Core Scientific is vigorously pursuing fresh sites to strengthen its AI and distributed processing proficiencies. They are essentially searching for novel land to broaden their dominion and remain at the forefront in the AI and virtual world.
