Shares of CoreWeave (CRWV 6.19%), a leader in artificial intelligence (AI) infrastructure, were on the move today after the company announced that it would invest $6 billion to open a new data center in Pennsylvania.
The news shows the company continuing to invest in the rapidly growing market, paving the way for new capacity. Additionally, CoreWeave could be benefiting from news that Nvidia will now be allowed to sell its H20 AI chips in China, which benefits a key ally and investor in the company, and paves the way for other companies to do the same, expanding the semiconductor market.
The stock closed up 6.2% on the news.
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CoreWeave announces a new data center
CoreWeave has been seeing scorching-hot growth since it pivoted its business model to AI infrastructure, providing computing capacity to companies like Microsoft, Nvidia, and OpenAI, and it needs new data centers to fuel that growth.
This morning, CoreWeave said it would commit more than $6 billion for a state-of-the-art data center in Lancaster, Pennsylvania. The announcement will be made at an event with President Trump, with both of its senators and the governor present.
The facility will be one of the first large-scale data centers in that region and will have an initial capacity of 100 megawatts, with the potential to expand to 300 MW.
Including the Lancaster facility, the company will now have 33 AI data centers, including 28 in the U.S.
What's next for CoreWeave?
The AI infrastructure company just wrapped up a quarter where it reported 420% revenue growth, and it's expected to continue to expand at a rapid rate.
While CoreWeave may be a long way from profitability, investing in new data centers makes sense when demand is growing this fast.
