By Mackenzie Tatananni

CoreWeave, the cloud computing company, said it was working with an Nvidia-backed start-up that plans to build a sprawling data center complex in West Texas.

The company announced Wednesday that it was working with Poolside, a French start-up, to "deliver advanced AI cloud services." Under the terms of the agreement, CoreWeave will provide a cluster of Nvidia GB300 NVL72 systems including more than 40,000 graphics processing units.

The GPUs, which are set to come online beginning in December 2025, will power Poolside's research and model training, the company said.

Separately, CoreWeave plans to provide Poolside with cloud solutions for Project Horizon, a two-gigawatt data center campus located in Texas. CoreWeave will serve as the operational partner and so-called anchor tenant for the first phase of the project, which comprises 250 megawatts of gross power with an option to expand capacity by an additional 500 megawatts.

Shares climbed 3.5% to $138.68 on Wednesday following the announcement. The benchmark S&P 500 index was up 1%.

CoreWeave already has a presence in the region, including through its relationship with other data-center operators. Its pending acquisition of digital infrastructure company Core Scientific moves to a shareholder vote on Oct. 30, though the company already leases the majority of Core Scientific's portfolio.

Poolside is only the latest data-center developer to break into Texas. It's part of a broader buildout in the region, where developers turn for large swaths of land and relatively cheap energy prices.

The West Texas site spans 500,000 acres and sits adjacent to the Permian Basin, a major natural gas hub, offering "direct access to abundant, low-cost natural gas and the physical capacity to scale to multi-gigawatt levels," Poolside wrote in a blog post.

It explained that the West Texas facility was "the next logical step" for the company -- "owning not just the intelligence layer, but the energy and compute foundation that supports it."

Poolside develops large AI models to automate software engineering tasks. The start-up was founded in 2023, originally in the U.S., but has since shifted its headquarters to France. It has financial backing from companies like eBay and Nvidia, both of which participated in a Series B funding round in late 2024.

Also on Wednesday, Nvidia was named as a member of the investor consortium purchasing Aligned Data Centers from Macquarie Asset Management in a $40 billion deal. Aligned designs, builds, and operates data centers largely across the South and Midwest, including four facilities in Texas.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 15, 2025 11:24 ET (15:24 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.