AMD Secures Up to 2.5 Gigawatts of Data Center Capacity from Core Scientific

Advanced Micro Devices (NASDAQ:AMD) has entered into an agreement with data center provider Core Scientific (NASDAQ:CORZ) to secure significant capacity for its artificial intelligence infrastructure. The deal, announced Tuesday, aims to support the growing computational demands of AMD and its customers amid the rapid expansion of AI.

Details of the Agreement

Under the terms of the deal, AMD will gain access to Core Scientific's AI-ready data center facilities. The key provisions include:

• An initial capacity of more than 500 megawatts (MW) is scheduled to become available starting in 2027.
• The agreement includes provisions to expand this capacity up to a total of 2.5 gigawatts (GW).
• This infrastructure will be available for AMD's customers to deploy their AI systems.

While the financial terms of the partnership were not disclosed, the agreement includes a provision for AMD to receive market-priced warrants to purchase Core Scientific common stock, contingent upon certain commercial conditions being met.

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Market Reaction and Context

Following the announcement, shares of Core Scientific rose 4.5% in premarket trading. In contrast, AMD's stock fell 4.8%, a move that the source material noted was in line with broader declines among other chipmaker stocks on the same day.

This strategic partnership highlights the intense competition for physical infrastructure required to power the AI industry. As cloud providers and enterprises accelerate their investments in AI, the demand for electricity, land, and specialized data center facilities has surged, making access to guaranteed capacity a critical competitive advantage.