Core Scientific (CORZ) allocated $444 million toward additional power infrastructure to support expanding AI operations.
On August 14, 2026, Core Scientific, Inc. (NASDAQ: CORZ) completed its acquisition of Polaris DS for approximately $444 million in cash. The transaction secures roughly 440 megawatts of grid-connected power capacity in Oklahoma, advancing the company’s objective to expand its Muskogee campus to 1.5 gigawatts of gross power. Core Scientific continues to aggressively acquire power capacity to feed surging artificial intelligence data center demand, building upon a business model it has already fundamentally reshaped from bitcoin mining.
This pattern of continuous acquisition raises a central question: is the company constructing a genuinely differentiated AI infrastructure platform, or merely accumulating debt-funded power capacity ahead of confirmed demand? CEO Adam Sullivan characterized the transaction as “another example of how we are strategically expanding our power portfolio,” highlighting that Core Scientific has added more than 600 megawatts of leasable power through site acquisitions this year alone. The company is already contracted to deliver approximately 82 megawatts at Muskogee to a customer beginning in the second half of 2027.
In July, Core Scientific also finalized an agreement with AMD, granting the semiconductor manufacturer access to more than 500 megawatts of AI-ready data center capacity starting in 2027, with provisions to scale up to 2.5 gigawatts. As part of the arrangement, AMD received market-priced warrants to purchase Core Scientific stock. The firm remains in the process of repurposing former bitcoin-mining sites into AI hosting facilities, though that transition is not yet complete. Financing terms for the recent acquisition spree, including the latest $444 million deal, have not been disclosed. Meanwhile, competition for power and data center capacity has intensified sharply, with AMD, Nvidia, and other chipmakers executing similar megawatt-scale agreements across multiple providers. This dynamic suggests Core Scientific’s newly acquired capacity may not remain scarce or highly valued for long.
Institutional positioning reflects ongoing sector rotation. As of Q1 2026, Core Scientific was held by 81 hedge funds, up from 76. Among peer companies transitioning from bitcoin mining to AI infrastructure, Riot Platforms was held by 49 hedge funds (down from 55), while CleanSpark saw its holder count rise to 37 from 32.
While Core Scientific is actively converting legacy mining operations into profitable AI data centers, its rapid acquisition pace requires investors to trust that management can swiftly secure paying customers for each new facility. Although we acknowledge the investment potential of CORZ, we believe certain other AI stocks offer greater upside potential with comparatively lower downside risk. For investors seeking an extremely undervalued AI stock positioned to benefit significantly from Trump-era tariffs and the broader onshoring trend, we recommend reviewing our free report on the best short-term AI stock.
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