AI Demand Increase Leads Crypto Miners to Convert Data Centers

AI Demand Boom Leads Crypto Miners to Revamp Data Centers
The increasing demand for GPUs is prompting crypto miners to overhaul their data centers to cater to the needs of the artificial intelligence (AI) industry.
As per a recent report by Bloomberg, the unprecedented demand for data center and GPU resources driven by AI has opened up new opportunities for crypto mining companies to repurpose their existing infrastructures.
AI Industry Driving Demand for Computing Power
The AI surge has caused a shortage of essential equipment and resources in the industry, along with the electricity needed to operate them.
The report revealed that new data center facilities currently under construction are quickly being leased out, with AI companies and cloud-service providers claiming approximately 83% of the capacity, according to a March report by CBRE Group.
To meet the escalating demand for data center space, numerous companies are turning to crypto mining firms, which already possess the required infrastructure and are looking for more profitable ways to utilize their assets.
Matt Brown, Chief Operating Officer at Core Scientific, shared his experience at an Nvidia-hosted conference, stating, “We are receiving calls and messages from industry peers in search of capacity as they are struggling to find available space.”
Brown added, “Everyone is racing to secure capacity within the next 12 months, and it’s becoming increasingly challenging.”
Core Scientific’s Collaboration with CoreWeave
Core Scientific recently announced a partnership with AI startup CoreWeave, with expectations of generating around $3.5 billion in revenue over a 12-year period.
CEO Adam Sullivan stated, “We see a significant opportunity in the AI sector where we can repurpose our existing infrastructure to accommodate clients looking to install large GPU arrays for their AI projects.”
The company has identified approximately 500 megawatts of capacity that can be converted into AI facilities, potentially becoming the largest GPU installation dedicated to AI on a global scale. This capacity is adequate to power hundreds of thousands of homes for a year.
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