The investor who halted a $9 billion artificial intelligence deal anticipates seeing returns from that decision in the near future

Core Scientific Poised for Major AI Data Center Expansion

• An influential backer of Core Scientific anticipates the company will secure leases for 400 megawatts of capacity with new clients this year.
• These agreements are expected to highlight sustained demand for data center infrastructure and reinforce the notion that artificial intelligence is experiencing robust growth rather than speculative hype.
• With a projected 47-gigawatt shortfall in available power, more cryptocurrency mining operations are likely to transition their resources to support AI workloads.

The investment leader who played a pivotal role in blocking one of 2025’s largest data center buyouts is confident that his decision to oppose the multibillion-dollar acquisition will prove advantageous in the coming year.

Trip Miller, who heads Gullane Capital Partners in Memphis, believes Core Scientific—a company specializing in developing and operating data centers—is on the verge of landing significant new contracts that could substantially increase its valuation.

“Within the next three months, I expect them to announce deals exceeding 100 megawatts,” Miller stated. “This would reveal untapped value that wasn’t reflected in the CoreWeave proposal.”

Back in October, Miller, a key stakeholder in Core Scientific, voiced opposition to a takeover bid from AI cloud provider CoreWeave, arguing that the stock-based deal undervalued Core Scientific. Initially valued at approximately $9 billion in July, the offer’s worth dropped by nearly half as CoreWeave’s share price declined. Shareholders ultimately voted against the acquisition on October 30, citing concerns over the deal’s diminished financial appeal.

Gullane Capital Partners founder Trip Miller.

Gullane Capital Partners

Miller’s forecast of around 100 megawatts in imminent commitments is based on discussions with industry insiders outside of Core Scientific’s leadership. He projects the company will lease out a total of about 400 megawatts this year, driven by surging demand for AI computing resources.

When asked about the likelihood of these new leases, a Core Scientific spokesperson declined to comment on “market rumors or speculation.”

If realized, these agreements would underscore the growing value of data center developers able to expand in an environment where energy is increasingly scarce.

According to an investor presentation from October, Core Scientific reported having roughly 1 gigawatt of current data center capacity, with an additional 1.5 gigawatts available for future growth.

AI Growth: Lasting Trend or Passing Fad?

These developments suggest that the massive investments being poured into data centers, advanced chips, and power infrastructure are fueling a sustained AI expansion, rather than an unsustainable bubble.

“We’re entering a period where demand for computing power will consistently outpace supply,” said Stephen Byrd, who leads thematic and sustainability research at Morgan Stanley.

A December report from Morgan Stanley identified the enormous power requirements of AI as one of the industry’s most pressing challenges.

Morgan Stanley research highlights the growing risk that data center developers may not have sufficient energy resources.

Morgan Stanley

The firm estimates that by 2028, data centers—which are essential for training large language models and running AI applications—will face a nationwide electricity deficit of 47 gigawatts. This gap is nearly ten times the average daily energy consumption of New York City.

Crypto mining companies, with their established power contracts and infrastructure, are well-positioned to quickly adapt and supply new data center facilities.

Shifting from Crypto Mining to AI Infrastructure

Both Core Scientific and CoreWeave previously operated as cryptocurrency miners before pivoting to focus on AI in recent years.

As power shortages intensify and the crypto mining sector faces headwinds, more companies are redirecting their efforts toward data center computing for AI.

Byrd noted that Morgan Stanley expects around 12 gigawatts of mining capacity—roughly 60% of the industry’s current total—to be converted for AI and high-performance computing over the next three years.

In September, Cipher Mining revealed plans to build a 168-megawatt data center in Colorado City, Texas, which will be leased to AI cloud provider Fluidstack. Following this announcement, Cipher’s stock soared from about $5 in August to nearly $25 by November.

Another mining company, Iren, recently secured a $9.7 billion AI cloud computing agreement with Microsoft. Last month, Hut 8 announced a deal to lease a 245-megawatt data center under development in Louisiana to Fluidstack.

“We believe most crypto miners will transition to offering high-performance computing infrastructure and services,” said Paul Golding, an analyst at Macquarie who tracks the crypto mining sector.

In July 2025, CoreWeave announced a stock-based acquisition of Core Scientific. However, as CoreWeave’s share price fell and Core Scientific’s rose, the value of the deal diminished.

Since the collapse of the acquisition, Core Scientific’s shares have dropped below $14, less than the $17 per share implied by the original CoreWeave offer.

Golding, who covers Core Scientific, set a price target of $34 per share in October—more than double its current value—citing the company’s ability to access power in a constrained market. His estimate factors in the potential value of uncontracted megawatts, projects in the pipeline, and the existing co-location agreement with CoreWeave.

Currently, CoreWeave is Core Scientific’s sole data center customer outside of its legacy crypto mining operations. Core Scientific leases 590 megawatts to CoreWeave, which could generate approximately $10 billion in revenue over the next 12 years. The company also plans to convert 400 megawatts of its mining capacity to high-performance computing within three years.

Miller expects that the forthcoming leases will involve new customers beyond CoreWeave. “I anticipate they’ll announce AI-related deals with third parties,” he said.