Core Scientific Doubles AI Capacity to 1.1 GW in $14B AMD Deal
Core Scientific has announced a significant expansion of its AI data center capacity, nearly doubling it to approximately 1.1 GW through a 15-year agreement with AMD, which involves a potential $14 billion in base contracted revenue. This deal adds an additional 530 MW of capacity across five campuses and is projected to kick off in 2027.
Under this agreement, AMD gains exclusive rights to reserve up to 2 GW of future capacity, signaling a long-term strategic partnership between the two companies. The facilities will support infrastructure built around AMD’s Instinct GPUs, EPYC processors, and the ROCm software platform, catering to cloud providers, AI model developers, and enterprise clients.
According to Mathew Hein, AMD’s chief strategy officer, this partnership enhances Core Scientific’s diverse portfolio of AI-ready data centers, providing customers with the necessary infrastructure for deploying AMD AI solutions at scale.
Industry analyst Matt Kimball highlighted that this agreement reflects a strategy by AMD to mitigate deployment risks by investing in infrastructure that supports high-density AI workloads, emphasizing that the deal is less about selling hardware and more about providing a pathway for deployment.
While the $14 billion figure represents base revenue projected over 15 years, the extra 2 GW of capacity is tied to reservation rights rather than confirmed customer commitments, which moderates the headlines.
Execution Becomes the Differentiator
With this deal, Core Scientific’s contracted AI portfolio now comprises around 1.1 GW of leased power capacity, translating to potentially over $24 billion in revenue. The company has been billing customers for 437 MW of capacity, which is expected to generate an annualized revenue run rate of about $635 million.
CEO Adam Sullivan emphasized that the ability to execute projects effectively will be the key differentiator in the emerging AI infrastructure competition. Core Scientific has secured two AI clients, each with commitments surpassing 500 MW across five campuses, illustrating its approach to developing facilities ahead of attracting long-term customers.
The company has set a benchmark for AI infrastructure development costs at approximately $11 to $12 million per megawatt, accounting for construction, electrical infrastructure, and cooling systems. At this rate, the initial AMD deployment could signify a roughly $6 billion investment in infrastructure.
Currently, construction is underway at Core Scientific’s Pecos, Texas campus, with deliveries expected to commence in the first half of 2027. Other developments are progressing in Texas, Oklahoma, Alabama, and Georgia, with additional deployments planned through 2028.
From Bitcoin Mining to AI Infrastructure
Core Scientific’s rapid transformation is underscored by a leap in colocation revenue from $10.6 million to $136.7 million in the second quarter compared to last year, while revenue from digital asset mining has dropped, as the company pivots from bitcoin mining to AI supports.
To prepare for further growth, Core Scientific has pinpointed over 2 GW of additional development opportunities, potentially operational between late 2028 and 2030. This agreement exemplifies that a competitive edge in the market is not only about having advanced AI technology but also about the ability to offer a comprehensive deployment strategy, which ensures the necessary supportive infrastructure is in place ahead of time.
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