Data center operator Core Scientific (CORZ) announced an infrastructure partnership with Advanced Micro Devices (AMD) centered on a 15-year lease of 529 megawatts of AI capacity in the United States, which the company said could generate more than $14 billion in base contract revenue.
This capacity is expected to support AMD customer deployments starting in 2027. The agreement gives AMD the right to reserve an additional 1,925 MW until December 28, 2028, subject to certain conditions, potentially expanding the partnership to approximately 2.5 GW.
AMD directly leased 377 MW across Core Scientific locations in Pecos and Hunt counties, Texas, and Muskogee, Oklahoma, according to the company’s quarterly report.
The unnamed cloud provider leased an additional 152MW in Auburn, Alabama, and Dalton, Georgia, under an AMD-backed deal.
Core Scientific and AMD will collaborate in the following areas>
The deal increases Core Scientific’s leased customer capacity to approximately 1.1 GW, with potential contracted revenues of more than $24 billion. As of mid-July, the company had billed customers for 437MW, which equates to approximately $635 million in annual colocation revenue.
This partnership will accelerate Core Scientific’s exit from Bitcoin mining. Colocation generated $136.7 million, or 83% of second-quarter revenue of $164.2 million, while self-mining revenue fell 66% to $21.5 million.
Core Scientific also terminated its contract to purchase Bitcoin mining chips from Block (XYZ), resulting in a $41.9 million charge. The 2024 agreement covered 3-nanometer chips with a hash rate of about 15 EH/s.
Data center operator owns 848 items $BTC Increased from $547 to $49.7 million equivalent as of June 30th $BTC 3 months ago. 2,385 units sold $BTC In the first quarter of this year, it was $208.2 million.
CORZ stock is up 5.6% in pre-market trading. AMD is down 4% as chip stocks continue to sell off.
