CleanCore commits $500M to Cerebras AI data center deal

CleanCore Solutions, the cleaning-products company pivoting to AI infrastructure, signed a 10-year colocation agreement with Cerebras Systems valued at approximately $800 million, committing up to $500 million to a $479 million Minnesota data center project. The deal, disclosed in a July 29 SEC filing, gives Cerebras fully leased occupancy of a Tier 3 campus delivering 55 MW of utility power and 40 MW of critical IT load at full buildout.

"This second development marks an important milestone in advancing our portfolio of critical digital infrastructure to secure compute capacity for Cerebras and other premier AI companies," Tyler Hassen, CEO of ZONE, said. "Building on our previously announced project in West Texas, this Minnesota campus expands ZONE's infrastructure footprint to meet the urgent power needs of customers."

CleanCore owns 79% of the joint venture running the project. Its first payment is $40 million — $25 million at closing and up to $15 million within four business days — with further capital calls scheduled through February 2027. About 20 MW of utility power is already energized, supporting an initial 15 MW of compute load, with the remaining capacity expected online by Q1 2027 when revenue begins. Two optional 10-year renewals could push total contract value above $3 billion.

The scale of the commitment raises immediate funding questions. As of March 31, CleanCore reported $4.1 million in cash, $13 million in restricted cash, and an accumulated deficit of roughly $169 million, with ongoing going-concern doubt. The company has sold about 200 million DOGE for $18.4 million and transferred 70 million DOGE for services, retaining 463 million DOGE worth approximately $44.3 million. It has not confirmed whether Dogecoin sale proceeds will fund the Minnesota project.

Funding Routes and Dilution Risk

CleanCore has two primary financing paths. A June prospectus authorized up to $750 million in common-stock sales through an at-the-market facility, with AI infrastructure listed as a possible use. The company also retains its Dogecoin holdings, though it has not earmarked those proceeds for the project.

The joint venture agreement limits CleanCore's downside: other parties cannot sue the company or force it to fund beyond its commitments. However, a funding shortfall would trigger dilution mechanisms that could reduce its 79% ownership stake or economic rights. The full agreement terms are due in a later quarterly filing.

Minnesota is CleanCore's second announced AI development. A West Texas venture that closed July 9 allows up to $100 million in initial contributions over nine months, with aggregate commitments potentially reaching $2 billion. The company is developing that project with HST Technologies, targeting 200 MW in the first phase and 500 MW by 2030.

The deal reflects a broader pattern of companies with limited balance sheets entering the AI infrastructure buildout. Bitcoin miner CleanSpark signed a $6.6 billion AI lease before securing the $2.1 billion needed to build it, while Core Scientific reported $80 million in profit from its AI hosting pivot after losing 56% on Bitcoin mining. VanEck has noted that AI-linked miners are earning premium valuations before most leased capacity is delivered.

Cerebras, meanwhile, continues to expand its customer base. The company was also selected by CrowdStrike to power its Falcon AIDR security platform, with Cerebras CEO Andrew Feldman citing inference speeds up to 15x faster than leading GPU-based solutions.

CleanCore shares trade on the NYSE American under the ticker ZONE, while Cerebras trades on Nasdaq as CBRS. The company's next financial update will show how it plans to fund both AI projects without diluting shareholders, its joint-venture position, or both.

This article is for informational purposes only and does not constitute investment advice.