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How Will CoreWeave's Data Center Push Power AI Innovation?
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Key Takeaways
CoreWeave is investing $6B in a large-scale data center in Lancaster, PA.
CRWV's expanded OpenAI deal and $14.2B Meta commitment boost its AI cloud capacity.
CRWV expects Q3 revenue of $1.26-$1.30B and operating income of up to $190M amid rising costs.
CoreWeave, Inc. (CRWV - Free Report) is solidifying its position as one of the most powerful enablers of artificial intelligence (AI) infrastructure. The company’s capacity to scale state-of-the-art infrastructure will be further strengthened by its recently announced data center investments — more than $6 billion in Lancaster, PA, — and a major project in Kenilworth, NJ, which the company is co-developing through a joint venture with Blue AL. These developments embody its strategic approach to building a geographically distributed data center network that supports both large-scale AI training and low-latency inference workloads across the country.
By directly controlling its facilities, power capacity and GPU-based systems, CoreWeave can achieve greater efficiency, lower operational costs and faster deployment cycles. This control allows the company to serve hyperscalers, startups and research institutions with unparalleled reliability and performance.
CRWV is on track to surpass 900 MW of active power by the end of the year. The second quarter ended with nearly 470 MW of active power, raising total contracted power to 2.2 GW, an approximate increase of 600 MW. Rapid expansion of its footprint is ongoing, driven by strong customer demand, to maintain a steady growth path. These capabilities are critical for customers developing frontier models, from generative AI labs to financial, healthcare and media enterprises that require compute-intensive solutions.
Moreover, CoreWeave’s infrastructure is built for scalability and sustainability. By leveraging cutting-edge cooling, energy-efficient designs and AI-optimized resource management, the company ensures long-term operational resilience. Its proprietary Mission Control platform further enhances performance visibility and automation across clusters.
The company’s data center expansion is not just about building infrastructure; it is about fueling the next generation of AI breakthroughs. In September 2025, CoreWeave expanded its agreement with OpenAI to support the training of next-generation AI models, solidifying its role as a key cloud platform for demanding AI workloads. Also, the company’s recent deal with Meta Platforms further strengthens this position, with Meta committing up to $14.2 billion through 2031 and an option to extend through 2032 for additional cloud capacity. Management anticipates third-quarter revenues of $1.26–$1.30 billion and adjusted operating income of $160–$190 million.
However, scaling aggressively (multiple data centers in various regions) involves execution risk. Moreover, challenges for CRWV remain plenty as it juggles ballooning interest expense, heavy capital expenditure and intense competition from rivals like Nebius Group N.V. (NBIS - Free Report) and Microsoft Corporation (MSFT - Free Report) .
How NBIS & MSFT are Expanding Their Data Center Footprint
Nebius is scaling aggressively to capture the surging demand for AI compute, positioning itself as a fast-emerging player in the global AI infrastructure market. By the end of 2025, it expects to secure 220 megawatts of connected power, either active or ready for GPU deployment. This expansion includes major data centers in New Jersey and Finland. Two additional greenfield data center projects in the United States are nearing completion, signaling the company’s commitment to scale aggressively and meet the surge in AI compute demand. Moreover, Nebius recently closed a deal with Microsoft for $17.4 billion, which involves NBIS providing dedicated GPU capacity to the latter from the new data center in Vineland, NJ, beginning later this year through 2031.
Microsoft is investing heavily in AI infrastructure and data center expansion. The company has committed to $80 billion in AI datacenter investments in 2025. It capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Microsoft has transformed every Azure region into an AI-first environment with liquid cooling, adding more than 2 GW of new data center capacity in the past year and now operating more than 400 data centers across 70 regions. MSFT plans to invest more than $30 billion in capex in the first quarter of fiscal 2026, up from $24.2 billion in fourth-quarter fiscal 2025.
CRWV Price Performance, Valuation and Estimates
Shares of CoreWeave have surged 217.8% over the past six months compared with the Internet Software industry’s growth of 28.7%.
Image Source: Zacks Investment Research
In terms of Price/Book, CRWV shares are trading at 25.01X, way higher than the Internet Software Services industry’s 6.83X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRWV’s earnings for 2025 has been revised downward over the past 60 days.
Image: Bigstock
How Will CoreWeave's Data Center Push Power AI Innovation?
Key Takeaways
CoreWeave, Inc. (CRWV - Free Report) is solidifying its position as one of the most powerful enablers of artificial intelligence (AI) infrastructure. The company’s capacity to scale state-of-the-art infrastructure will be further strengthened by its recently announced data center investments — more than $6 billion in Lancaster, PA, — and a major project in Kenilworth, NJ, which the company is co-developing through a joint venture with Blue AL. These developments embody its strategic approach to building a geographically distributed data center network that supports both large-scale AI training and low-latency inference workloads across the country.
By directly controlling its facilities, power capacity and GPU-based systems, CoreWeave can achieve greater efficiency, lower operational costs and faster deployment cycles. This control allows the company to serve hyperscalers, startups and research institutions with unparalleled reliability and performance.
CRWV is on track to surpass 900 MW of active power by the end of the year. The second quarter ended with nearly 470 MW of active power, raising total contracted power to 2.2 GW, an approximate increase of 600 MW. Rapid expansion of its footprint is ongoing, driven by strong customer demand, to maintain a steady growth path. These capabilities are critical for customers developing frontier models, from generative AI labs to financial, healthcare and media enterprises that require compute-intensive solutions.
Moreover, CoreWeave’s infrastructure is built for scalability and sustainability. By leveraging cutting-edge cooling, energy-efficient designs and AI-optimized resource management, the company ensures long-term operational resilience. Its proprietary Mission Control platform further enhances performance visibility and automation across clusters.
The company’s data center expansion is not just about building infrastructure; it is about fueling the next generation of AI breakthroughs. In September 2025, CoreWeave expanded its agreement with OpenAI to support the training of next-generation AI models, solidifying its role as a key cloud platform for demanding AI workloads. Also, the company’s recent deal with Meta Platforms further strengthens this position, with Meta committing up to $14.2 billion through 2031 and an option to extend through 2032 for additional cloud capacity. Management anticipates third-quarter revenues of $1.26–$1.30 billion and adjusted operating income of $160–$190 million.
However, scaling aggressively (multiple data centers in various regions) involves execution risk. Moreover, challenges for CRWV remain plenty as it juggles ballooning interest expense, heavy capital expenditure and intense competition from rivals like Nebius Group N.V. (NBIS - Free Report) and Microsoft Corporation (MSFT - Free Report) .
How NBIS & MSFT are Expanding Their Data Center Footprint
Nebius is scaling aggressively to capture the surging demand for AI compute, positioning itself as a fast-emerging player in the global AI infrastructure market. By the end of 2025, it expects to secure 220 megawatts of connected power, either active or ready for GPU deployment. This expansion includes major data centers in New Jersey and Finland. Two additional greenfield data center projects in the United States are nearing completion, signaling the company’s commitment to scale aggressively and meet the surge in AI compute demand. Moreover, Nebius recently closed a deal with Microsoft for $17.4 billion, which involves NBIS providing dedicated GPU capacity to the latter from the new data center in Vineland, NJ, beginning later this year through 2031.
Microsoft is investing heavily in AI infrastructure and data center expansion. The company has committed to $80 billion in AI datacenter investments in 2025. It capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Microsoft has transformed every Azure region into an AI-first environment with liquid cooling, adding more than 2 GW of new data center capacity in the past year and now operating more than 400 data centers across 70 regions. MSFT plans to invest more than $30 billion in capex in the first quarter of fiscal 2026, up from $24.2 billion in fourth-quarter fiscal 2025.
CRWV Price Performance, Valuation and Estimates
Shares of CoreWeave have surged 217.8% over the past six months compared with the Internet Software industry’s growth of 28.7%.
Image Source: Zacks Investment Research
In terms of Price/Book, CRWV shares are trading at 25.01X, way higher than the Internet Software Services industry’s 6.83X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRWV’s earnings for 2025 has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
CRWV currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.