Colocation revenue reached $215.4 million, which made up 92% of total revenue of $232.9 million. Bitcoin mining, once the core business, is now a rounding error on the income statement.
The company posted sequential revenue growth of nearly 60% in the quarter. Billing capacity stood at 485 MW as of September 30, 2026.
The contracted pipeline is substantial. Core Scientific has approximately 1.1 GW of contracted power capacity. That includes 590 MW under a long-term deal with CoreWeave.
Another 530 MW is tied to a 15-year agreement with an AMD-backed neocloud counterpart. Initial deliveries for the AMD-related agreements are projected to begin in the first half of 2027.
Management also expects about $1.6 billion in net operating income from the full colocation footprint, implying margins of approximately 90%. The company says more than half of its expected cash flows should be backed by investment-grade credit.
Taken together, Core Scientific sees potential for over $24 billion in total contracted revenue from its colocation operations. That is a projection across the life of the contracts, not money already in the bank.
From hashrate to high-density racks
Core Scientific plans to exit Bitcoin mining by Q4 2026. Starting in 2027, it intends to operate exclusively as a high-density colocation provider for AI workloads.
What this means for investors and the sector
There is a gap between today and the target. The Q3 colocation figure of $215.4 million, annualized, comes to well under half of the $1.8 billion run-rate management expects. Billing capacity of 485 MW is also less than half of the roughly 1.1 GW under contract.
Closing that gap depends on new facilities coming online on time. The first AMD-related deliveries are not expected until the first half of 2027.
Customer concentration is another factor worth watching. CoreWeave alone accounts for 590 MW of contracted capacity, and the AMD-backed counterpart accounts for 530 MW. That puts the bulk of the pipeline with two relationships.
For now, Core Scientific’s own scorecard is straightforward. Watch billing capacity climb from 485 MW toward 1.1 GW, watch the mining exit complete by year-end, and watch whether the AMD-related deliveries arrive on schedule in 2027. If those milestones land, the $1.8 billion projection starts looking less like a forecast and more like a lease schedule.
