CoreWeave is expanding a data center near Dallas, which is expected to double the power demand in the nearby city of Denton, Texas. This highlights the growing pressure AI workloads are placing on the U.S. power supply. The data center, developed by Core Scientific, will support OpenAI's operations. CoreWeave recently announced a $9 billion acquisition of Core Scientific to gain direct control over data centers supporting AI workloads.
Denton, located about 50 miles northwest of Dallas, has seen its population nearly double to around 166,000 over the past 25 years. To meet the surge in power demand from AI, the city is passing additional costs to data center operators and expanding grid infrastructure. The data center's significant power consumption raises concerns about the impact on power reliability. Texas has mandated that data centers use backup generators or reduce consumption during emergencies.
The Denton data center, originally used for cryptocurrency mining, shifted to AI workloads in December, leading to constant power consumption. This transformation intensifies grid pressure as the facility requires power year-round. Additional backup generators and batteries are planned to address this challenge. The data center, leased by CoreWeave, is Core Scientific's largest project, with a power capacity of approximately 390 megawatts.
