Core Scientific (CORZ) stock surged more than 11% after-market

Core Scientific (CORZ) stock surged more than 11% after-market on Wednesday after the data center and bitcoin mining company said it was planning a $1.2 billion expansion

Data center and bitcoin mining company Core Scientific (NYSE: CORZ) stock surged more than 11% after-market on Wednesday after the company said it was planning a $1.2 billion expansion of a data center in Denton, Texas, with (NYSE: NVDA) and cloud provider CoreWeave.

The 70 MW of additional contracted power at the Denton site increases the full critical IT load to approximately 260 MW, according to a statement.

The agreement increases CoreWeave’s total contracted HPC infrastructure with Core Scientific to approximately 590 MW across six sites. We believe this addition aligns with CoreWeave’s growing need for robust, high-density infrastructure to support NVIDIA GPU operations.”

The expansion builds on a partnership between the two firms, which focuses on deploying advanced computing solutions at scale. Core Scientific said that the company is "actively seeking additional sites to expand its HPC hosting capacity," underpinning the growing demand for data centers that can host and support computing power for HPC and AI machines.

“With over $10 billion in potential cumulative revenue with CoreWeave, we believe Core Scientific is strategically positioned to capitalize on the growing demand for energy-dense, application-specific data centers,” the statement said.

Bitcoin miners have been shifting some of their computing powers to AI to diversify their revenue sources, as the competition in the mining industry has become intense following the recent halving event and rising power costs.

CoreWeave, a cloud provider specializing in AI and GPU-based workloads, has been rapidly scaling its infrastructure to support growing enterprise demand.