Stock market today: S&P 500 falls as government shutdown, trade jitters persist
Investing.com -- CoreWeave shares rose 4.6% Wednesday morning following a Wall Street Journal report that the company is partnering with AI startup Poolside to build a massive data center complex in West Texas capable of generating its own power.
The planned facility, dubbed "Horizon," will be built on more than 500 acres of land owned by the Mitchell family, spanning an area approximately two-thirds the size of Central Park. The project aims to leverage natural gas from the Permian Basin to power a data center with two gigawatts of computing capacity - equivalent to the electric generation capacity of the Hoover Dam.
According to the report, Poolside will initially gain access to a cluster of Nvidia AI computing resources provided by CoreWeave starting in December. The companies will then collaborate on the broader development of the self-powered data center, potentially reducing costs and improving long-term viability compared to facilities built without power generation capabilities.
The project represents a new approach to building and financing AI computing infrastructure. Poolside is currently raising $2 billion in a funding round that would value the company at $14 billion, a significant increase from its $3 billion valuation approximately a year ago when it raised $500 million.
CoreWeave, which is backed by Nvidia, specializes in cloud infrastructure services for AI applications.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.