Data center developer Core Scientific has secured a potential $1 billion in financing from Morgan Stanley to further develop its data center assets.

The 364-day loan facility closed for an initial $500 million, but includes an accordion feature that allows for an increase in total commitments by an additional $500 million.

Core Scientific said the proceeds would be used for the development of data center assets, including equipment purchases, pre-development costs, real property acquisition, and costs related to the procurement of “additional energy” for data centers.

“This strengthens our liquidity and enhances our financial flexibility as we execute our development and go-to-market strategy,” said Adam Sullivan, CEO of Core Scientific. “With this additional financing capacity, we can operate decisively by deploying capital to expedite project-ready-for-service timelines, making us an even more compelling infrastructure provider for customers.”

Founded in 2017, Core Scientific began as a cryptomine data center operator, but has now pivoted to AI data center development.

Last week, Core Scientific announced the acquisition of a 265-acre, 285MW site in Hunt County, Texas. The company is prioritizing scaling its colocation business, according to its CFO, Jim Nygaard.

Core Scientific said it is in discussions with hyperscalers, neoclouds, and large enterprises for leasing at its sites. AI cloud firm CoreWeave, which has attempted to buy Core Scientific twice, is contracted to lease 590MW of capacity across the company’s sites.