Core Scientific seeks $3.3 billion bond sale to further AI data center pivot
The company is building six AI data centers, leased to CoreWeave for 12 years, and is expected to generate approximately $10 billion in revenue.
What to know:
- Core Scientific (CORZ) is raising $3.3B via a junk bond sale to finance its shift from crypto mining to AI-focused data center operations.
- The company is building six AI data centers, leased to CoreWeave for 12 years, and is expected to generate approximately $10 billion in revenue.
- This high-yield debt issuance (part of $17.9B raised in AI infrastructure this year) will fund construction costs, repay existing debt, and build reserves.
Borrowers linked to AI infrastructure have raised $17.9 billion in junk bonds so far this year, Bloomberg reported. CORZ itself is building six data centers that will support AI workloads, with the capacity leased to CoreWeave under a 12-year agreement that could bring in around $10 billion in revenue, the report adds, citing sources familiar with the deal.
Core Scientific’s move follows a string of large deals. Recent offerings tied to Google-backed data centers and CoreWeave raised a combined $6.7 billion. Another firm, Edged Compute, is marketing $1.3 billion in bonds to fund facilities leased to CoreWeave and an Alibaba unit.
Core Scientific said it will use proceeds to repay existing debt and fund reserves. It also plans to support construction across several states if costs exceed available funds, signaling how capital-intensive the AI buildout has become.
