Core Scientific Inc. (NASDAQ:CORZ) could generate roughly $14 billion in revenue over the next 15 years through its newly announced partnership with Advanced Micro Devices Inc. (NASDAQ:AMD).

Chipmakers Back AI Data Center Boom

In a Bernstein research note published Thursday, analyst Gautam Chhugani said the 530 megawatts contracted capacity agreement highlights a broader shift in AI infrastructure financing.

Major chipmakers increasingly backing long-term data center leases signed by former Bitcoin miners.

Bernstein argues that chipmakers are increasingly using their balance sheets to help secure long-term AI infrastructure, allowing miners with existing power infrastructure to transition into AI hosting businesses.

The report, as cited by The Block, notes that similar deals have emerged across the sector, including Hut 8 Corp. (NASDAQ:HUT), which announced a 704-MW agreement with a single tenant reportedly identified as Nvidia Corp. (NASDAQ:NVDA). Meanwhile, AMD has also reserved 200 MW with Riot Platforms Inc. (NASDAQ:RIOT).

Profitability Outlook

Bernstein estimates the partnership will generate around $14 billion in total revenue over 15 years and almost $900 million in average annual revenue. Also, roughly $1.8 million per megawatt in annual revenue is estimated.

While revenue per megawatt is modestly below recent AI colocation agreements, the direct lease to AMD is expected to generate nearly 100% margins under its triple-net structure.

Core Scientific has guided to $11 million to $12 million of capital expenditure per megawatt, implying total project costs near $6 billion, with approximately $1 billion already invested.

The remaining construction is expected to be financed through project-level debt.

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