The surge in demand for GPUs in the artificial intelligence (AI) industry is prompting crypto mining companies to repurpose their data centers to meet the needs of this growing sector. As AI requires significant amounts of computing power, there is an unprecedented shortage of equipment and supplies, as well as the electricity needed to power these resources. New data center facilities are quickly being leased, with approximately 83% of the capacity already claimed by AI companies and cloud-service providers. To keep up with the demand for data-center space, many companies are turning to crypto-mining firms, which already have the necessary infrastructure and are looking to find more profitable uses for their properties.
One example of this trend is the partnership between Core Scientific and AI startup CoreWeave, which is expected to generate around $3.5 billion in revenue over the next 12 years. Core Scientific CEO Adam Sullivan sees the opportunity in AI as a way to convert existing infrastructure to host clients who require large arrays of GPUs for their AI projects. The company has identified approximately 500 megawatts of capacity that can be converted to AI facilities, potentially creating the largest GPU installment dedicated to AI globally. This amount of capacity is enough to power hundreds of thousands of homes for a year.
The shortage of data-center space is becoming increasingly challenging, with companies scrambling to find capacity to meet the growing demand from the AI industry. Matt Brown, Chief Operation Officer at Core Scientific, described the situation as companies receiving cold calls and text messages from industry peers seeking capacity that is simply not available. The pressure to find adequate capacity within the next 12 months is intensifying, making it exponentially more difficult to secure sufficient resources. With the rapid growth of the AI industry, the need for data-center space and computing power is only expected to increase in the future.
As more companies turn to crypto miners to repurpose their data centers for AI projects, the collaboration between these two industries is expected to continue to grow. The partnership between Core Scientific and CoreWeave is just one example of how companies are seeking new opportunities by converting existing infrastructure to meet the needs of the AI industry. With the potential for significant revenue generation and the ability to power large-scale AI projects, this trend is likely to expand as companies look for more efficient and profitable ways to utilize their resources.
Overall, the surge in GPU demand driven by the AI industry is reshaping the data center landscape, with crypto mining companies playing a significant role in meeting this new demand. The partnership between Core Scientific and CoreWeave demonstrates how companies can leverage existing infrastructure to cater to the needs of the AI sector. With the shortage of data-center space becoming more challenging, companies are turning to innovative solutions to repurpose their properties and meet the growing demand for computing power. As the AI industry continues to expand, the collaboration between crypto miners and AI companies is likely to become increasingly important in meeting the needs of this rapidly growing sector.
