Core Scientific has announced a significant expansion of its infrastructure, now totaling 382 megawatts, in response to the growing demand for data center resources.

This expansion aligns with Core Scientific's strategy to develop application-specific data centers that cater to the energy needs of modern computing.

The new agreement will allow Core Scientific to host an additional 112 megawatts of infrastructure, primarily for CoreWeave's NVIDIA GPU operations, which is expected to generate around $2 billion in revenue over a 12-year period.

The contract, which was initially announced in June, is projected to yield approximately $290 million in annual revenue, contributing to a total of over $6.7 billion over the life of the agreement.

CoreWeave will finance all necessary capital investments to enhance Core Scientific's infrastructure for high-performance computing.

Site modifications for the new infrastructure are set to commence in the latter half of 2024, with operations expected to begin by early 2026.

This expansion comes shortly after Core Scientific rejected a buyout offer from CoreWeave, citing a low valuation.

Following the announcement of this expansion deal, Core Scientific's stock surged by over 12%, reflecting investor optimism.

The cumulative revenue from Core Scientific's contracts with CoreWeave is now projected to exceed $6.7 billion, surpassing initial estimates.

This expansion is part of a multi-year hosting deal that is expected to generate around $2 billion in new revenue for Core Scientific.

In July, Core Scientific mined 411 Bitcoin and operated approximately 172,000 miners, which accounted for about 81% of its data center's total mining capacity.

Despite a previous offer to acquire Core Scientific for $1.02 billion, CoreWeave's proposal was rejected as the company navigated its bankruptcy earlier this year.