Core Scientific, Inc. (NASDAQ: CORZ) stock is rising on the US stock charts today following the announcement of a critical infrastructure enhancement. As of the most recent check, CORZ shares were trading at $13.69, reflecting a 6.70% surge. This surge in value is largely attributed to the completion of a major contract option by CoreWeave, an AI Hyperscaler.
CoreWeave Exercises Option with Core Scientific
CoreWeave has finalized its option to secure additional infrastructure under the terms of a pre-existing 200 MW hosting contract with Core Scientific (CORZ). The original agreement, signed on June 3, 2024, focused on high-performance computing (HPC) hosting services.
The exercised option commits Core Scientific to enhance infrastructure at one of its sites, facilitating an additional 120 MW of critical IT load dedicated to hosting CoreWeave’s NVIDIA GPUs. The term “critical IT load” refers specifically to the power delivered to essential data center systems, excluding power used for ancillary systems like cooling.
Site Modifications and Future Revenue Growth
The site’s modifications are anticipated to start in the second half of 2025 and be finished and functioning by the second half of 2026. The most recent 12-year deal adds an estimated $2.0 billion in extra cumulative income, strengthening Core Scientific’s financial picture. When added to earlier contracts, this raises the estimated total income from CoreWeave contracts to $8.7 billion.
CORZ Expanding High-Performance Computing Strategically
Core Scientific is aggressively increasing its infrastructure in accordance with its long-term plan in order to satisfy the rising demand for HPC workloads. CORZ has strengthened its position as a leader in the data center sector by committing to contracting about 500 MW of important IT load for high-performance computing. Furthermore, CORZ continues to explore new locations for future expansions, while increasing power allocations at existing sites.
Financial Structuring and Investment Plans
In accordance with the agreement, all capital investments necessary for infrastructure upgrades will be financed by CoreWeave. Core Scientific (CORZ) will benefit from capex credits, estimated at $180 million, which will be offset against hosting payments. The contract also allows for two potential five-year renewal periods, further enhancing long-term business prospects.
