Core Scientific's AMD Deal Could Generate $14 Billion Over 15 Years, Bernstein Forecasts

Chipmakers Back AI Data Center Boom

In a Bernstein research note published Thursday, analyst Gautam Chhugani said the 530 megawatts contracted capacity agreement highlights a broader shift in AI infrastructure financing.

Major chipmakers increasingly backing long-term data center leases signed by former Bitcoin miners.

Bernstein argues that chipmakers are increasingly using their balance sheets to help secure long-term AI infrastructure, allowing miners with existing power infrastructure to transition into AI hosting businesses.

Profitability Outlook

Bernstein estimates the partnership will generate around $14 billion in total revenue over 15 years and almost $900 million in average annual revenue. Also, roughly $1.8 million per megawatt in annual revenue is estimated.

While revenue per megawatt is modestly below recent AI colocation agreements, the direct lease to AMD is expected to generate nearly 100% margins under its triple-net structure.

Core Scientific has guided to $11 million to $12 million of capital expenditure per megawatt, implying total project costs near $6 billion, with approximately $1 billion already invested.

The remaining construction is expected to be financed through project-level debt.

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