Operational capacity exceeding 500 megawatts (MW) is significant for the following:
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Revenue Potential and Stability
- High-Powered Hosting for AI and HPC: With a capacity of over 500 MW, Core Scientific can offer hosting services to high-demand sectors such as artificial intelligence (AI) and high-performance computing (HPC), beyond cryptocurrency mining. The CoreWeave deal alone utilizes 500 MW for AI and HPC workloads, underscoring the scale of power needed to attract large, stable revenue contracts.
- Revenue Diversification: This capacity allows Core Scientific to host a variety of clients across industries (e.g., tech, finance, biotech), reducing its dependency on cryptocurrency mining. This diversification stabilizes revenue streams, especially when cryptocurrency markets are volatile.
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Competitiveness in a Growing Market
- Demand for Compute Power: The rapid growth of AI and machine learning has driven demand for large-scale GPU-based processing. A capacity of over 500 MW positions Core Scientific as a competitive option for companies needing substantial infrastructure, which is crucial to attracting long-term, high-value contracts.
- Scalability: With greater power capacity, Core Scientific can scale services to meet current and future demand. It also allows for the possibility of expanding contracts with existing clients or securing multiple clients with large power requirements, reinforcing its position in a competitive market.
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Economies of Scale and Operational Efficiency
- Reduced Costs: Operating at a larger scale allows Core Scientific to spread out fixed costs over more capacity, which can reduce operational expenses on a per-MW basis. This efficiency is especially valuable in cryptocurrency mining, where energy costs are one of the largest expenses.
- Enhanced Bargaining Power: Higher capacity can give Core Scientific leverage in negotiating power rates, equipment costs, and financing terms, improving overall profitability.
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Positioning as an Industry Leader
- Attracting Strategic Partners: The ability to operate at such a high capacity makes Core Scientific a preferred partner for major clients in need of dedicated data infrastructure. This level of power availability signals reliability and commitment, which can attract enterprise-level clients.
- Market Recognition: Core Scientific’s large capacity differentiates it from smaller competitors and positions it among the leaders in digital infrastructure, making it a more attractive investment opportunity for institutional investors.
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Future Growth and Expansion Potential
- Capacity for New Sites or Expansions: With its current operational capacity, Core Scientific has the flexibility to allocate resources efficiently and add sites or expand existing facilities if demand increases. This strategic foresight is vital for future-proofing the business as the demand for computing power continues to grow in diverse industries.
Overall, exceeding 500 MW in operational capacity allows Core Scientific to meet current client needs, improve profitability, and expand its role in high-growth markets like AI, HPC, and cryptocurrency, ensuring long-term resilience and competitiveness.
| Location | State | Operational Capacity (MW) | Additional Information |
|---|---|---|---|
| Dalton | Georgia | 100 | Began mining operations in 2018. |
| Calvert City | Kentucky | 250 | Converted from a former steel rolling mill; began mining in 2019. |
| Marble | North Carolina | 100 | Began mining operations in 2018. |
| Grand Forks | North Dakota | 104 | Began mining operations in 2021. |
| Pecos | Texas | 71 | Began mining operations in 2022; total contracted power of 250 MW. |
| Denton | Texas | 125 | Began mining operations in 2022; total contracted power of approximately 300 MW. |
| Austin | Texas | 16 | Hosting services began in 2024; leased facility for high-performance computing. |
These facilities collectively contribute to Core Scientific's substantial infrastructure, supporting both Bitcoin mining and high-performance computing operations.
Sources -
https://investors.corescientific.com/news-events/press-releases/detail/79/core-scientific-announces-june-2024-production-and-operations-updates
https://corescientific.com/infrastructure-footprint/
https://investors.corescientific.com/news-events/press-releases/detail/9/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
https://baxtel.com/data-centers/core-scientific
https://fortworthbusiness.com/energy/city-of-denton-to-develop-300mw-blockchain-data-center/
https://www.datacenterdynamics.com/en/news/coreweave-signs-another-70mw-hosting-deal-with-core-scientific/