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    CORZ
    Earnings call· Dec 2025(Q4 FY25)

    Core Scientific, Inc./tx Q4 FY25 earnings call CORZ

    Mar 2, 2026 Source

    Executive summary

    Core Scientific Q4 FY25 — AI Factory Execution and Pipeline Expansion

    Core Scientific demonstrated strong execution in building out AI infrastructure, energizing 350 megawatts for CoreWeave and expanding its development pipeline to 1.5 gigawatts. While a new customer contract was not signed as anticipated, management attributes this to negotiation complexity and renewed hyperscaler engagement. The company is strategically positioning itself for future growth by securing long-lead equipment and advancing site readiness, aiming to convert all Bitcoin mining capacity to colocation within three years.

    Highlights

    5

    • Energized approximately 350 megawatts of capacity, with nearly 200 megawatts currently billing for CoreWeave, putting them past the halfway mark of the contract.

    • Secured an additional 175 acres of land for the Dalton, Georgia site, expanding total gross power capacity to 450 megawatts, including 120 megawatts of uncommitted leasable customer capacity.

    • Signed a contract to acquire a major new site in Hunt County, Texas, representing approximately 265 acres to support roughly 430 megawatts of gross power capacity or 285 megawatts of customer leasable capacity.

    • Opportunistically sold over 1,900 Bitcoin for approximately $175 million in January, materially above current market levels, strengthening liquidity.

    • Expanded development pipeline by 600 leasable megawatts, bringing total pipeline to approximately 1.5 gigawatts of customer leasable capacity.

    Concerns

    3

    • Did not sign a new customer contract by this call, despite expecting to, citing it as a "timing issue, not a demand issue" due to hyperscaler engagement restarting post-merger agreement termination and complex negotiation processes.

    • Neo Cloud deals require strong balance sheet guarantees (hyperscaler, chip manufacturer, or investment-grade), which adds complexity and time to negotiations.

    • Identified an error in historical accounting going back to 2024 for certain property, plant, and equipment that was demolished, resulting in a restatement and a material weakness noted in filings.

    Guidance & targets

    13
    CategoryTargetConfidence
    Colocation capacity dedication
    Every megawatt dedicated to colocation
    high materiality
    High
    Hunt County site acquisition closing
    Close by end of Q1
    medium materiality
    High
    Denton South Campus energization and completion
    Remaining buildings on track for Q2 energization, full campus completion by midyear
    medium materiality
    High
    Marble data hall delivery
    Expected to be delivered in the second quarter
    medium materiality
    High
    Muskogee Phase 1 delivery
    Remaining on track for full delivery in the second quarter
    medium materiality
    High
    Dalton Phase 1 delivery
    Full delivery expected in the second quarter
    medium materiality
    High
    Dalton Phase 2 delivery
    Full delivery targeted for early 2027
    medium materiality
    High
    Hunt campus initial delivery
    Initial delivery currently planned in the second half of 2027
    medium materiality
    High
    Pecos campus initial delivery
    Initial delivery expected to begin in early 2027
    medium materiality
    High
    Dalton Phase 3 initial delivery
    Initial delivery target for the second half of 2027
    medium materiality
    High
    Albern initial delivery
    First 10 megawatts in the second half of 2026
    medium materiality
    High
    CoreWeave contract fulfillment
    Full contract fulfilled and delivered by early 2027
    high materiality
    High
    Annual build-out capacity
    Up to 500 megawatts
    medium materiality
    Medium

    Operational metrics

    40
    Energized capacity
    350
    As of March 2, 2026

    Approximately 350 megawatts of capacity energized for CoreWeave.

    Billing capacity
    200
    As of March 2, 2026

    Close to 200 megawatts are currently billing for CoreWeave.

    Total gross power capacity
    450
    Future

    Dalton will expand to 450 megawatts of total gross power capacity.

    Uncommitted leasable customer capacity
    120
    Future

    Includes 120 megawatts of uncommitted leasable customer capacity at Dalton.

    Land secured
    175additional
    Current

    Secured an additional 175 acres of land for Dalton expansion.

    Leasable customer capacity
    200
    Future

    Increased leasable customer capacity in Pecos, Texas to 200 megawatts.

    Land acquired
    265
    Current

    Contract to acquire approximately 265 acres in Hunt County, Texas.

    Gross power capacity
    430
    Future

    Expected to support roughly 430 megawatts of gross power capacity at Hunt County.

    Customer leasable capacity
    285
    Future

    Expected to support 285 megawatts of customer leasable capacity at Hunt County.

    Development pipeline customer leasable capacity
    1.5
    Current

    Current pipeline is approximately 1.5 gigawatts of customer leasable capacity.

    Total liquidity
    530
    End of FY25

    Finished the year with approximately $530 million in total liquidity.

    Bitcoin sold
    1900
    January 2026

    Opportunistically sold just over 1,900 Bitcoin for approximately $175 million in January.

    Bitcoin held
    1000under
    As of March 2, 2026

    At this time, we hold under 1,000 bitcoin.

    CoreWeave contract infrastructure value
    $5B-$5.5B
    Total

    The 590-megawatt CoreWeave contract represents somewhere between $5 billion and $5.5 billion of total infrastructure.

    CoreWeave contract financing potential
    4
    At stabilization

    Up to $4 billion that we can raise against our contracted capacity with CoreWeave at stabilization.

    Project-based financing advance rate
    60%-85%
    Future

    Project-based financing structures with 60% to 85% advance rate of build costs depending on customer credit quality and site characteristics.

    Billable megawatts
    130
    Current

    Denton alone currently represents approximately 130 billable megawatts, actively supporting more than 50,000 Grace Blackwell GPUs.

    Operational megawatts
    90
    Current

    Denton North is fully operational, running production GPU workloads and represents 90 billable megawatts.

    Data hall billing commenced
    41
    Current

    At Denton South, the first 41-megawatt data hall has commenced billing.

    Billable megawatts
    36
    End of Q4 FY25

    2 of the 3 data halls were delivered by the end of the fourth quarter, representing 36 billable megawatts, supporting approximately 15,000 Grace Blackwell GPUs.

    Energized capacity
    213
    End of CY25

    We had energized 213 megawatts by the end of the calendar year.

    Leasable capacity
    30
    Planned

    Construction is underway on the first phase of our 30-megawatt leasable data center in Albern, Alabama.

    AI factories under construction
    5
    2025

    Broke ground on 5 AI factories supporting our 590-megawatt commitment to CoreWeave.

    Data center shell area
    1
    2025

    These 5 sites represented 1 million square feet of data center shell.

    Installed infrastructure assets
    2
    2025

    Nearly $2 billion of installed infrastructure assets.

    Labor hours supported
    5
    2025

    More than 5 million labor hours supported by an average of 3,300 workers on site.

    Total project investment
    5
    2025

    Over $5 billion in total project investment.

    Campus size
    262
    Current

    Our 262-megawatt, 400,000 square foot Denton campus.

    Data center size
    65
    Current

    Our 65-megawatt 250,000 square foot Marble data center.

    Campus size
    70
    Current

    A 70-megawatt, 138,000 square foot data center has completed vertical construction.

    Data center size
    30
    Current

    A 30-megawatt 52,000 square foot data center has also completed vertical construction.

    Data center size
    145
    Current

    Dalton Phase 2, a 145-megawatt 250,000 square foot data center.

    Leasable megawatts
    285
    Planned

    A planned 285 leasable megawatt AI campus.

    Leasable megawatts
    200
    Planned

    Our planned 200 leasable megawatt campus in West Texas.

    Leasable capacity
    185
    Planned

    Phase I which is designed to deliver 185 megawatts of leasable capacity.

    Leasable capacity
    120
    Planned

    Dalton, Phase 3 will consist of approximately 250,000 square foot greenfield data center planned to deliver 120 megawatts of leasable capacity.

    Initial delivery megawatts
    10
    H2 2026

    The site remains on track for its first 10 megawatts in the second half of 2026.

    Development pipeline expansion
    600
    Recent

    Expanded our development pipeline by 600 leasable megawatts.

    Megawatts energized
    185
    2025

    We delivered more than 185 meaningful billable capacity, progressed multiple campuses through energization.

    Megawatts under exclusivity arrangements
    500
    Current

    We sit with 500 megawatts under exclusivity arrangements with a large investment-grade counterparty.

    Industry KPIs

    2
    MetricValueDetails
    Capacity CAPEX590megawatts
    Ai product adoption monetization50,000GPUs

    Deals & partnerships

    1
    Not specified (land seller)Acquisition of land for new data center campus

    Contract to acquire a major new site in Hunt County, Texas, representing approximately 265 acres.

    Risks & headwinds

    5
    Failure to sign new customer contractsQ4 FY25

    Did not sign one by this call (expected to)

    Mitigation: Engaged in active discussions with hyperscalers, neo clouds, and large enterprises; currently under exclusivity arrangements for 500 MW; focusing on counterparty strength and execution.

    Complexity and duration of hyperscaler/Neo Cloud contractingOngoing

    Deals at this level are not a one meeting exercise. It's a rigorous multistep process.

    Mitigation: Engaged, moving through the process, competing for long-term opportunities; emphasizing proven execution and site readiness.

    Need for investment-grade guarantees for Neo Cloud dealsOngoing

    Requires strong balance sheet standing behind the contract (hyperscaler, chip manufacturer, or investment-grade guarantee).

    Mitigation: Disciplined approach to not compromise on counterparty strength; expecting evolution and centralization of guarantee terms in the market.

    Historical accounting error and material weaknessHistorical (2024 onwards)

    Error in historical accounting going back to 2024 for property, plant, and equipment demolition costs.

    Mitigation: Filed amended statements to correct the error; taken appropriate steps to strengthen controls over nonroutine accounting items; no impact to revenue, adjusted EBITDA, or cash flow.

    Bitcoin mining profitability due to low hash priceCurrent

    Hash price going to levels never seen before, dipping below $0.03.

    Mitigation: Business is in runoff, optimizing machine fleet to cover contractual power costs and hit minimum power draw requirements profitably; installing block units to maintain productivity.

    What to watch in Q1 FY26

    5

    New customer contract signing

    Next quarter (Q1 FY26 earnings call)
    CurrentDid not sign one by this call; 500 MW under exclusivity
    TargetAt least one new customer contract signed

    Why it matters

    Signals diversification of customer base and validates demand for new capacity, crucial for future growth.

    We did not signed one by this call, and we are not satisfied with that. But the demand is there, and we have 2 sites under short exclusivity arrangements. We expect that this exercise will result in colocation leasing agreements in the near future.

    Q&A highlights

    5

    Details on the two deals under discussion (size, location) and the importance of credit quality for potential tenants.

    Adam Sullivan stated that hyperscaler conversations restarted after the merger agreement termination. They are currently under exclusivity arrangements for 500 megawatts with a large investment-grade counterparty and hope to sign one soon. He emphasized that they will not compromise on counterparty strength.

    “We're in discussions across a number of them with a number of our sites. And one thing I'll say is we -- today, we sit with 500 megawatts under exclusivity arrangements with a large investment-grade counterparty, that we're excited to continue to advance forward, and we're really looking forward to hopefully signing one of those over the near future.”

    asked by Jon Petersen · answered by Adam Sullivan

    2 min read7 chapters

    Detailed Narrative

    01

    CoreWeave Build-out Progress

    Core Scientific has made significant progress on its 590-megawatt commitment to CoreWeave, energizing approximately 350 megawatts and billing for nearly 200 megawatts. This represents over half of the total contract, with Denton North fully operational at 90 billable megawatts and other sites like Marble, Muskogee, and Dalton Phase 1 on track for Q2 delivery. The company emphasizes its execution capability in delivering complex AI factories at scale, adapting to evolving GPU technologies and cooling requirements.

    02

    Strategic Pipeline Expansion

    The company has expanded its development pipeline by 600 leasable megawatts, bringing the total to approximately 1.5 gigawatts of customer leasable capacity. This includes the acquisition of a new 265-acre site in Hunt County, Texas, capable of supporting 285 leasable megawatts, and the conversion of the Pecos site from Bitcoin mining to colocation for 200 leasable megawatts. These sites are being advanced through pre-development and long-lead equipment procurement to offer customers certainty on Ready-For-Service (RFS) timelines.

    03

    Customer Acquisition Challenges and Strategy

    Core Scientific did not sign a new customer contract as planned, attributing it to the complex, multi-step process with hyperscalers and the need for strong balance sheet guarantees for Neo Cloud deals. Post-merger agreement termination, discussions with hyperscalers have restarted, and the company is currently under exclusivity arrangements for 500 megawatts with a large investment-grade counterparty. The strategy prioritizes counterparty strength and disciplined growth.

    04

    Dalton Expansion and Pecos Conversion

    The Dalton, Georgia site is expanding to 450 megawatts total gross power capacity, adding 120 megawatts of uncommitted leasable capacity, supported by an additional 175 acres. The Pecos, Texas site is being converted from Bitcoin mining to colocation, aiming for 200 leasable megawatts with initial delivery in early 2027, leveraging its "goldilocks zone" status for customer signing due to secured general contractors and long-lead equipment.

    05

    Financing and Balance Sheet Strength

    Core Scientific maintains a strong balance sheet with approximately $530 million in total liquidity. The company opportunistically sold over 1,900 Bitcoin for $175 million in January. Various financing options are available, including corporate-level alternatives and up to $4 billion against the CoreWeave contract at stabilization, with project-based financing structures (60-85% advance rate) planned for pipeline sites.

    06

    Bitcoin Mining Transition

    While Bitcoin mining still contributes the majority of revenue, the company's primary focus is scaling the colocation business. Bitcoin mining operations are being optimized to cover contractual power costs, with a strategic goal to dedicate every megawatt in the portfolio to colocation within the next three years. The Pecos site conversion is a key step in this transition.

    07

    Technology Evolution and Adaptability

    The company's engineering and development teams are actively adapting to rapid architectural changes, new GPU generations (H100 to Grace Blackwell, NVL 36/72, GB 200/300, Rubin Vera), higher power densities, and new cooling paradigms. This involves future-proofing designs and standardizing approaches to accommodate various chipsets (NVIDIA, Google, etc.) and use cases like inference and large language models.

    AI-generated summary of the company’s earnings call. Not investment advice.