Core Scientific Acquires Polaris DS LLC for $421M to Boost AI Infrastructure Capacity in Oklahoma

summarizeSummary

Core Scientific is acquiring Polaris DS LLC for $421 million to significantly expand its Muskogee, Oklahoma campus, adding 440 megawatts of power capacity for AI infrastructure.

check_boxKey Events

• Acquisition of Polaris DS LLC

  Core Scientific entered into an agreement to acquire Polaris DS LLC for approximately $421 million in cash, with a potential additional $40 million based on future electric capacity availability. The transaction is expected to close by early in the third quarter of 2026 and will be funded using existing liquidity.

• Significant Power Capacity and Land Acquisition

  The acquisition includes 40 acres of land adjacent to Core Scientific's Muskogee, Oklahoma data center, an electrical substation, and electrical service agreements providing up to 440 megawatts of continuous electricity from Oklahoma Gas and Electric Company (OG&E).

• Strategic Expansion for AI Infrastructure

  This acquisition is a key part of Core Scientific's multi-tiered strategy to scale its Muskogee campus to approximately 1.5 gigawatts of gross power (1.0 GW leasable), significantly accelerating its timeline for delivering new capacity for high-density colocation services, particularly for AI workloads.

• Pre-Closing Reorganization

  Prior to closing, Polaris DS LLC's operating business, including customer and supplier contracts, tangible assets, intellectual property, employees, and associated liabilities, will be transferred to an affiliate of the seller, meaning Core Scientific will primarily acquire the land, substation, and power agreements.

auto_awesomeAnalysis

Core Scientific's acquisition of Polaris DS LLC for $421 million (with a potential additional $40 million) is a highly significant strategic move, representing a substantial capital deployment for the company. This transaction is crucial for expanding its high-density colocation services, particularly for AI workloads, by securing 440 megawatts of continuous electricity and 40 acres of land adjacent to its existing Muskogee, Oklahoma data center. This expansion is part of a broader strategy to scale the Muskogee campus to 1.5 gigawatts of gross power, significantly accelerating the company's capacity build-out. The deal is expected to close in Q3 2026 and will be funded by existing liquidity, indicating a strong financial position to support this growth initiative. This follows a recent announcement of a major expansion at its Pecos, Texas campus, signaling an aggressive growth strategy in digital infrastructure.