Core Scientific, Inc./tx (CORZ)

Core Scientific, Inc. designs, builds and operates large-scale, purpose-built data centers supporting high-density colocation services and digital asset mining, primarily for its own account and, to a lesser extent, for third-party customers. As of December 31, 2025, the Company owned or leased ten data centers across seven U.S. states—Alabama, Georgia (2), Kentucky, North Carolina, North Dakota, Oklahoma, and Texas (3)—representing approximately 1.4 GW of gross utility power capacity and roughly 920 MW of total leasable customer power capacity, with some facilities operational and others under construction or in development. Founded in 2017, the Company originally focused on digital asset mining and hosting third-party mining customers, but in 2024 announced a strategic pivot toward high-density colocation (HDC) compute infrastructure to serve AI and high-performance computing (HPC) workloads.

This shift was anchored by long-term contracts with CoreWeave, Inc., beginning with a 16 MW agreement at its Austin, Texas facility in February 2024 and expanding through subsequent contractual options to approximately 590 MW of leased customer power capacity by early 2025. While the majority of 2025 revenue was derived from self-mining digital assets, the Company expects HDC to become a significant revenue driver in 2026 and intends to convert its entire power portfolio to HDC infrastructure over the next three years, continuing digital asset mining only to meet existing power commitments during conversion. The Company operates in the wholesale colocation market, offering large, long-term agreements (often 10+ years) with hyperscale cloud providers, AI/HPC operators, and large enterprises, using triple-net or modified gross lease structures paired with take-or-pay power commitments.

Core Scientific operates through three segments: Colocation (providing space, power, cooling, and facility services to third parties for AI/HPC workloads), Digital Asset Self-Mining (mining bitcoin and other digital assets for its own account), and Digital Asset Hosted Mining (providing hosting services to third-party miners, a segment the Company does not expect to expand going forward). The Company highlights key industry trends shaping its strategy, including rapidly increasing rack power densities driven by AI/HPC workloads (from historical 5–15 kW per rack to 50 kW or more, sometimes exceeding 100 kW), which require advanced cooling and greater electrical capacity; evolving and more stringent utility requirements around power reservations, collateral, and demand commitments in capacity-constrained markets; and extended equipment lead times (12–18 months or more for transformers, switchgear, and cooling systems) and skilled labor shortages that increasingly affect data center construction timelines, which typically span 18–24 months or longer. The Company maintains fixed, variable, and interruptible power supply agreements with electric power suppliers across its facilities and is actively evaluating opportunities to acquire additional sites, land, and power capacity to expand its data center footprint.