Core Scientific shifts Bitcoin mining site toward 1.5GW AI data center plan

Core Scientific plans to turn its Pecos, Texas site into a large artificial intelligence data center campus. 

The Bitcoin miner said the project could reach up to 1.5 gigawatts of gross power capacity. The company said about 1 gigawatt of that capacity is expected to be available for leasing. The site will support high-density colocation services as demand for AI computing power continues to rise.

Core Scientific said it will repurpose about 300 megawatts currently used for Bitcoin mining at the Pecos site. That power will now support data center operations for AI workloads.

The company said the first data hall has completed foundation work. Vertical construction is now starting, with early capacity expected in 2027.

CEO Adam Sullivan said the company is using its internal experience to support the buildout.

“We continue to leverage our deep in-house expertise to differentiate how we build and scale next generation artificial intelligence infrastructure,” Sullivan said.

Power contracts and land support expansion

Core Scientific has secured another 300 megawatts of power under contract with its utility provider. The company also plans to expand through a behind-the-meter power solution.

To support the project, Core Scientific said it acquired more than 200 acres of land near the Pecos site. The added land gives the company more room for the planned data center campus.

The company also announced plans last week to raise $3.3 billion through senior secured notes due in 2031. It plans to use the funds for data center expansion in Georgia, Texas, North Carolina, and Oklahoma.

Bitcoin miners seek AI revenue streams

Core Scientific has earned most of its revenue from digital asset mining in the past. However, it has increased its focus on infrastructure services as miners search for new income sources.

Mining companies have faced tighter margins after rising energy costs and changing market conditions. As a result, several firms have moved some mining sites toward AI and high-performance computing.

MARA Holdings bought a 64% stake in French infrastructure firm Exaion in February to expand into AI services. Hive, Hut 8, TeraWulf, and Iren have also worked on converting mining facilities into data centers.

Other energy-heavy sites are also being repurposed. Alcoa is close to selling its idle Massena East smelter in New York to Bitcoin mining firm NYDIG. TeraWulf also bought Century Aluminum’s Hawesville smelter in Kentucky for $200 million, with plans to turn it into a high-performance computing and AI facility.