Core Scientific to Provide CoreWeave up to 16 MW of Data Center Infrastructure to Support AI and HPC Workloads in Long Term Hosting Contract with Potential Revenue of More than $100 Million
March 06 2024 - 4:10PM
Business Wire
- Strategic extension of data center hosting business levers Core
Scientific’s expertise in high value compute to broaden revenue
model to customers engaged in rapidly growing High-Performance
Computing (“HPC”)
- Core Scientific leases Austin, TX data center formerly housing
Hewlett Packard; provides basis for potential growth opportunities
with expanded infrastructure
- The Company expects this contract to be accretive to 2024
earnings
Core Scientific, Inc. (Nasdaq: CORZ) (“Core
Scientific” or “the Company”), a leader in bitcoin mining and
digital infrastructure for emerging high-value compute, and
CoreWeave, the leading specialized GPU cloud provider, today
announced a multi-year contract for Core Scientific to supply up to
16 MW of data center infrastructure to CoreWeave. The total
potential revenue associated with the contract is more than $100
million.
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the full release here:
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Core Scientific is a leader in bitcoin
mining and digital infrastructure for emerging high-value compute
(Graphic: Core Scientific)
Under the terms of the contract, Core Scientific will deliver up
to 16 MW of capacity at its new Austin, TX data center to host
CoreWeave’s infrastructure. Core Scientific is leasing a tier 3
data center in Austin that formerly housed Hewlett Packard to
expand its hosting business to include HPC.
“CoreWeave delivers massive scale GPU compute resources on top
of the industry's fastest and most flexible infrastructure,” said
Michael Intrator, CoreWeave CEO. “Our strong business relationship
with Core Scientific is based on years of demonstrated
responsiveness, high uptime data centers, professionalism and
trust. Both companies share a core belief in accelerating
innovation, which our collaboration will help to achieve in rapidly
growing applications in AI and high-performance computing.”
“At Core Scientific, we deploy our unique asset base
strategically to achieve our mission: to accelerate digital
innovation by scaling high-value compute rapidly, efficiently and
responsibly,” said Core Scientific CEO, Adam Sullivan. “Our new
data center in Austin will support CoreWeave’s near-term
requirements while also expanding and diversifying Core
Scientific’s hosting customer portfolio across two categories of
high value compute: bitcoin mining and specialized GPU cloud
compute. We look forward to exceeding CoreWeave’s expectations,
helping them achieve their business objectives and exploring
opportunities to expand our relationship in alignment with our
infrastructure expansion plans.”
Core Scientific hosted CoreWeave’s GPU processing hardware in
its data centers from 2019 through 2022. Core Scientific operates
more than 300 MW of energized infrastructure in proximity to major
metropolitan areas and with access to high-bandwidth
telecommunications infrastructure, both necessary requirements to
support GPU cloud compute workloads.
“We believe today’s Core Scientific has the valuable ability to
flex our asset base in order to maximize revenue and earnings. Our
diversified business model and leading scale enable us to continue
operating as a low-cost bitcoin miner while also expanding our
hosting customer base and diversifying our earnings streams,” added
Sullivan.
As of January 31, 2024, Core Scientific operated seven data
centers in five U.S. states, most with minimum operating capacity
of 100MW, for a total operating capacity of 724 MW. The Company’s
stated growth plan calls for 372 MW of bitcoin mining
infrastructure expansion at its two Texas data centers, equivalent
to more than 20 exahash of mining capacity. Core Scientific’s
self-mining business produced more bitcoin in 2021, 2022 and 2023
than any other listed bitcoin miner in North America. The Company
consistently delivers higher hash rate utilization than the average
for its North American peer group and for bitcoin miners at
scale.
ABOUT CORE SCIENTIFIC
Core Scientific is one of the largest bitcoin miners and hosting
solutions providers for bitcoin mining in North America.
Transforming energy into high value compute with superior
efficiency at scale, we employ our own large fleet of computers
(“miners”) to earn bitcoin for our own account and provide hosting
services for large bitcoin mining customers at our seven
operational data centers in Georgia (2), Kentucky (1), North
Carolina (1), North Dakota (1) and Texas (2). We derive the
majority of our revenue from earning bitcoin for our own account
(“self-mining”). To learn more, visit www.corescientific.com.
FORWARD-LOOKING STATEMENTS AND EXPLANATORY NOTES
This press release includes “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by the use of
words such as “estimate,” “plan,” “project,” “forecast,” “intend,”
“will,” “expect,” “anticipate,” “believe,” “seek,” “target” or
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. The
Company’s actual results may differ materially from those
anticipated in these forward-looking statements as a result of
certain risks and other factors, which could include, but are not
limited to, the following: risks and uncertainties relating to the
Company’s ability to achieve significant cash flows from
operations; the effects of the emergence from the Company’s chapter
11 cases on the Company’s liquidity, results of operations and
business; the trading price and volatility of the Company’s common
stock; the comparability of the Company’s post-emergence financial
results to its historical results and the projections filed with
the bankruptcy court in the Company’s chapter 11 cases; changes in
the Company’s business strategy and performance; the possibility
that the Company may be unable to achieve its business and
strategic goals; the Company’s post-bankruptcy capital structure;
attraction and retention of key personnel; the Company’s ability to
achieve expected benefits from restructuring activities;
restrictions on the Company’s operations contained in the
agreements governing the Company’s indebtedness; the Company’s
ability to generate sufficient cash to reduce its indebtedness and
its potential need and ability to incur further indebtedness; the
impact of the halving event; actions taken by third parties,
including the Company’s creditors and other stakeholders, as well
as other risk factors set forth in the Company’s Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q filed with the
Securities and Exchange Commission. These statements are provided
for illustrative purposes only and are based on various
assumptions, whether or not identified in this press release, and
on the current expectations of the Company’s management. These
forward-looking statements are not intended to serve, and must not
be relied on by any investor, as a guarantee, an assurance, a
prediction or a definitive statement of fact or probability. Actual
events and circumstances are difficult or impossible to predict and
will differ from assumptions. Many actual events and circumstances
are beyond the control of the Company. These forward-looking
statements are subject to a number of risks and uncertainties,
including those identified in the Company’s reports filed with the
U.S. Securities & Exchange Commission, and if any of these
risks materialize or our assumptions prove incorrect, actual
results could differ materially from the results implied by these
forward-looking statements. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
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