AI cloud-computing startup CoreWeave (NASDAQ:CRWV) surged on Tuesday after it announced plans to invest up to $6 billion in building a state-of-the-art AI data center in Lancaster, Pennsylvania. The center is designed to support advanced AI applications and strengthen U.S. global competitiveness.
Initially sized at 100 megawatts and expandable to 300 MW, the facility will be one of the region’s first large-scale AI centers and part of CoreWeave’s broader U.S. network of 33 data centers.
The company will unveil the project at a CEO roundtable with President Donald Trump during Senator Dave McCormick’s Energy and Innovation Summit at Carnegie Mellon University.
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The event brings together leaders like Governor Josh Shapiro and Senator John Fetterman to discuss how emerging technologies, including AI, can drive national innovation, economic growth, and security.
CoreWeave CEO Michael Intrator emphasized the growing demand for AI compute and said this project would help accelerate innovation while creating high-impact jobs. The data center will generate 600 skilled jobs and scale to 175 permanent roles, with each job expected to spur more local employment.
CoreWeave will operate the center in partnership with Chirisa Technology Parks and Machine Investment Group, which will help lead hiring and community engagement efforts. The project reinforces CoreWeave’s commitment to scaling next-generation infrastructure in key economic regions like the Mid-Atlantic.
CoreWeave earns revenue by leasing its high-performance GPU infrastructure to businesses and AI developers for tasks like model training and complex computing. The company secures income through multi-year, upfront contracts in which customers pay for extended access to its AI-optimized cloud platform.
CoreWeave stock has gained 225% since its March IPO. However, it has declined by over 23% in the last 30 days.
Since May, at least six Wall Street firms (including DA Davidson, Barclays, and Bank of America Securities) have downgraded the stock’s rating. In July, at least three firms, including Mizuho, Stifel, and Needham, also downgraded their ratings on the stock, citing concerns over rising capital expenditures tied to its $9 billion all-stock acquisition of Core Scientific (NASDAQ:CORZ).
Price Action: CoreWeave stock traded higher by 8.56% to $143.70 premarket at last check Tuesday.
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