Core Scientific Q3 Colocation Revenue Reaches $215.4 Million

Core Scientific (NASDAQ: CORZ) reported $215.4 million of colocation revenue for the third quarter of 2026, up from $136.7 million in the prior quarter, as billable customer power capacity increased to 485 megawatts from 395 MW. The company is nearing completion of its CoreWeave buildout while preparing to begin deliveries under a separate 530 MW development program involving AMD and an AMD credit-backed neocloud customer.

The digital infrastructure operator said it now has more than 1 gigawatt of leased power across its footprint and over $24 billion of contracted revenue. The contracted portfolio is expected to produce approximately $1.8 billion of average annual recurring GAAP revenue and $1.6 billion of annual net operating income, with a blended NOI margin of about 90%. Those figures are estimates tied to the contracts rather than revenue already recognized.

CoreWeave buildout approaches completion

Core Scientific has leased approximately 590 MW to CoreWeave across facilities in Texas, Georgia, Oklahoma and North Carolina. About 485 MW was billing as of Nov. 5, with the overall buildout expected to be completed in early 2027.

The Denton, Texas, facility accounts for about 260 MW of leased and billable capacity. Muskogee, Oklahoma; Marble, North Carolina; and Austin, Texas, were also substantially complete, with their combined leased capacity billing. At Dalton, Georgia, about 75 MW of 175 MW was billing, with completion estimated for early 2027.

The CoreWeave agreements represent more than $10 billion of potential revenue over their terms and approximately $850 million of estimated average annualized colocation GAAP revenue. The contracts are generally structured as 12-year, take-or-pay arrangements with two five-year options, although the Austin agreement has a seven-year term with extension options. Core Scientific anticipates profit margins of 80% to 85% under the agreements.

Cash collections will not initially match reported GAAP revenue. Capex credits can offset 50% of monthly cash rent during the early lease years, causing cash revenue to trail straight-line GAAP revenue. Cash payments are expected to rise to contractual rent after those credits are exhausted, while annual rent escalators could lift cash revenue above GAAP revenue in later years. CoreWeave-related revenue is paid into a lockbox tied to Core Scientific’s $3.3 billion of senior secured notes due in 2031.

AMD-related capacity scheduled to start in 2027

Core Scientific’s other major contracted program covers about 530 MW for AMD and an AMD credit-backed neocloud customer. Initial deliveries at Pecos, Texas, and Auburn, Alabama, are expected in the first half of 2027, followed by Dalton and Muskogee in the second half. The Hunt County, Texas, site is scheduled for an initial delivery in the first half of 2028, with all 530 MW expected to be delivered by the end of that year.

The company estimates an 85% NOI margin for the AMD-backed neocloud lease and a 100% NOI margin for the AMD direct lease. Together with the CoreWeave contracts, the portfolio is expected to produce the approximately 90% blended NOI margin cited by management.

Beyond contracted capacity, Core Scientific identified several possible power pathways associated with the AMD reservation. These include about 385 MW supported by existing grid connections, roughly 600 MW progressing through utility load studies and approximately 940 MW of potential behind-the-meter generation. These categories describe development pathways and do not represent additional delivered capacity.

The company also listed about 170 MW of uncommitted leasable power at Calvert City and Grand Forks, along with more than 2 GW of potential new-site opportunities in varying stages of due diligence.

Execution and power availability remain key uncertainties

Core Scientific’s outlook depends on completing data-center construction on schedule and securing sufficient electricity, long-lead infrastructure components, equipment and supplies. The company also identified access to qualified personnel and the availability of suitable land and power for additional sites as material execution considerations.

Actual revenue, cash flow and delivery timing could differ from current estimates because of construction progress, billing commencement dates, capex-credit utilization, contractual escalators and lease modifications. Capacity still under utility study, behind-the-meter evaluation or site due diligence also remains subject to development and approval risks.