Core Scientific, a top company in high-performance computing, recently grew its data centers, boosting its market value. In February 2025, the company entered a deal with AI hyperscaler CoreWeave and announced a 1.2 billion dollar expansion of their Denton, Texas facility. This new expansion adds 70 megawatts(MW) of contracted power, which raises the facility’s total critical IT load to about 260 MWs. The agreement enhances Core Scientific’s total revenue to approximately $10.2B throughout the 12-year contract, further establishing it as an industry-leading provider of custom module data centers for high-performance computing workloads.
After the Core Scientific announcement regarding the Denton expansion, the company experienced a growth of over 11% in after-market trading core scientific stock. This rise in stock price demonstrates the faith that people have regarding the company’s strategic positioning and their growing focus on the AI & Cloud services industry. This result further paints the picture of Core Scientific using the surge in demand for powerful bandwidth-dense data center infrastructure management (DCIM) to support NVIDIA GPU and Nvidia data center operations.
Strategic Data Center Expansion
This month in February 2025, Core Scientific announced a $1.2 billion expansion of its Denton, Texas facility in partnership with AI company CoreWeave and Microsoft data center, Google Data Center. The site’s total critical IT load has increased to approximately 260 MW as a result of this expansion, which adds 70 MW of contracted power. The agreement brings CoreWeave’s total contracted HPC infrastructure with Core Scientific to about 590 MW across six sites, aligning with the growing demand for robust, high-density infrastructure to support NVIDIA GPU operations.
Besides, Core Scientific expanded into Auburn, Alabama, with a new high-performance computing facility. The Auburn colocation data center, which was built inside the AUBix facility that was already there, opened with 16 MW of capacity and the potential for more. The top big tech company intends to make a first-stage investment amount of about $135 million in the facility. The total project spending amount is anticipated to exceed $400 million, including significant capital expenditures from potential partners.
Impact on Market Valuation
Core Scientific’s financial future is now more secure thanks to these expansions. The $1.2 billion deal for the Denton facility increased the company’s expected total revenue to $10.2 billion over 12 years. This steady income improves financial stability and makes investors more confident. After the Denton expansion was announced, Core Scientific’s stock went up by more than 11% in hyperscale data center market trading. This improvement shows that investors trust the company’s data center industry growth and its strong role in AI and cloud computing data centers.
The expansion also made the company’s ability to support high-performance computing and AI workloads. including more data center power consumption and high-tech infrastructure, Core Scientific can better serve its customers. The move helps the company stay ahead of its competitors in the fast-expanding tech industry. As the need for AI and cloud services continues to grow, Core Scientific is well-positioned for future success.
Increased Mining and HPC Capacity
“The expanded data centers help Core Scientific grow in both Bitcoin mining and high-performance computing. The Denton site adds 70 MW of power, supporting advanced NVIDIA GPUs for faster AI and machine learning. This setup is important for handling complex computing tasks.
In Auburn, the new 16 MW facility is built for high-power computing, with plans to expand. It supports Core Scientific’s mining and also provides hosting services for other companies, helping increase revenue and improve its high-performance computing services.”
Competitive Edge in the Industry
“By expanding its edge data center Core Scientific has gained an advantage over competitors in the fast-growing AI and high-performance computing market. Its big investments in Texas and Alabama show its commitment to growing and meeting the rising demand for AI and cloud services. This forward-thinking strategy sets it apart from others still planning similar expansions.
Its partnership with CoreWeave makes Core Scientific even stronger. By signing long-term deals with a top AI company like equiniх, NTT data centers, or AWS data center, it secures steady income and strengthens its reputation as a trusted provider of powerful computing services.”
Future Growth Potential
Looking ahead, Core Scientific is actively seeking additional sites to expand its HPC hosting capacity. The Largest Data center company is evaluating new locations and planning further investments to meet the growing requirements of AI and cloud computing clients. This strategic expansion is poised to capitalize on the increasing demand for energy-dense, application-specific data centers, positioning Core Scientific for sustained growth in the coming years.
Otherwise, The company is expanding its services beyond Bitcoin mining into AI and HPC sectors aligning with broader industry data center market trends. Not only does this diversification reduce the risks associated with the volatility of the cryptocurrency market, but also opens new avenues for revenue, thereby enhancing Core Scientific’s long-term growth prospects.
