Key Points
Core Scientific expects $1.8 billion in annual revenue from contracted capacity.
Third-quarter GAAP colocation revenue grew nearly 60% sequentially to $215 million.
Core Scientific invested cash on hand for AMD's initial 530 megawatts.
On its third-quarter 2026 earnings call, held on Nov. 5, 2026, Core Scientific (NASDAQ:CORZ) announced that its contracted data center portfolio will generate $1.8 billion in average annual run-rate revenue once fully operational. The company is exiting Bitcoin mining to become a pure-play colocation provider, housing specialized computing hardware for artificial intelligence customers. Long-term lease agreements offer predictable cash flows as new data center facilities come online.
Three takeaways from the call stand out for long-term investors.
1. Colocation Expansion Drives Long-Term Contracted Revenue
Core Scientific is completing its transition into high-density colocation, housing specialized hardware for artificial intelligence workloads. Management projects its contracted capacity of 1.1 gigawatts (GW, a unit of power equal to 1,000 megawatts) across CoreWeave and Advanced Micro Devices will yield $1.6 billion in annual net operating income (NOI, profit generated from property operations after operating expenses).
We have approximately 1.1 GW contracted across CoreWeave and AMD. Once fully delivered and billing, we expect that portfolio alone to generate $1.8 billion in average annual run rate revenue and $1.6 billion in NOI.
-- Adam Sullivan, Chief Executive Officer
2. Internal Cash Fully Funds Initial AMD Data Center Rollout
Developing high-density data centers requires substantial upfront capital before facilities generate leasing income. Core Scientific deployed internal cash to fund its entire equity requirement for the initial 530 megawatts (MW, a measure of power capacity) contracted by chipmaker Advanced Micro Devices.
Notably, we have already invested, from cash on hand, all of the equity capital required from Core Scientific for the initial 530 MW under the AMD contract.
-- Adam Sullivan, Chief Executive Officer
3. Industrywide Capital Tightness Creates Asset Acquisition Opportunities
Heavy capital demands are pressuring smaller data center developers and private equity-backed operators across the industry. Core Scientific is evaluating opportunities to buy powered land and projects under construction from capital-constrained sellers at stable valuations.
The current environment is also creating a broader range of acquisition opportunities. In recent months, we have seen more assets offered for sale, from powered land to facilities under construction, to projects with customer contracts already in place.
-- Adam Sullivan, Chief Executive Officer
Looking Ahead
Data center energization accelerates across multiple states, driving sequential revenue growth. Operating data center campuses and secured utility power offer structural development advantages, while management tracks project financing options.
Looking ahead, we are expecting a double-digit sequential increase in fourth quarter revenue as we continue to bill for additional megawatts and benefit from a full quarter of revenue from prior deliveries.
-- Jim Nygaard, Chief Financial Officer
Near-term execution centers on delivering contracted capacity before initial AMD deployments begin in 2027.
Our immediate focus is on completing the CoreWeave build-out and delivering the AMD program while positioning the business to expand our site portfolio and our customer base.
-- Adam Sullivan, Chief Executive Officer
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