CoreWeave intends to construct a $1.6bn AI cloud-based facility in Plano, Texas

CoreWeave, a cloud company specializing in GPUs, intends to invest $1.6 billion in a data center in Plano, Texas. To qualify for a tax credit approved this week by the Plano City Council, the company will need to invest at least $800 million each year for the following two years. In 2025 and 2026, CoreWeave will receive 50 percent of the minimum of $1.6 billion spent on modifications.

Lincoln Property Company's Lincoln Rackhouse is publicly listed as the owner and operator of the data center at 1000 Coit Road, which has undergone several iterations. Before being sold to Westmount Realty Capital in 2004, it was formerly the North American campus of French telecommunications behemoth Alcatel. Afterward, it was transferred to Countrywide Financial, which Bank of America subsequently acquired during the 2008 financial crisis. In 2018, Lincoln Rackhouse acquired the facility, which BoA had sold as part of a data center consolidation endeavor.

CoreWeave began as a crypto mining company but effectively transitioned to AI-focused cloud computing to capitalize on the surge in generative AI workloads. As hyperscalers struggled to acquire GPUs, Nvidia granted CoreWeave (and other cloud startup businesses) priority access to the chips and invested in the firm as part of a $221 million round. A month later, another $200 million was raised.

Microsoft signed a multi-year agreement with CoreWeave in June to utilize its data centers for some Azure AI workloads. CoreWave offers three data center regions at this time: US West in Las Vegas, Nevada; US East in Weehawken, New Jersey; and US Central in Chicago, Illinois.