Core Scientific pivots from crypto mining to AI infrastructure with massive 1.5GW facility expansion
Core Scientific is overhauling its Pecos, Texas location, turning it into a sprawling 1.5-gigawatt data center campus dedicated to artificial intelligence applications, while redirecting previously allocated Bitcoin mining resources.
The Bitcoin mining firm Core Scientific has announced intentions to expand its Texas-based operations into a substantial artificial intelligence-oriented data center campus featuring as much as 1.5 gigawatts of total power infrastructure.
Through a statement released on Monday, the organization revealed it is transforming its Pecos, Texas, location into a specialized high-density colocation facility engineered to accommodate AI computational demands as the need for advanced computing resources continues to surge. From the total projected capacity, approximately 1 GW will be made accessible for client leasing.
We continue to leverage our deep in-house expertise to differentiate how we build and scale next generation artificial intelligence infrastructure
Adam Sullivan, CEO of Core Scientific
During this operational shift, approximately 300 megawatts that are presently allocated to Bitcoin mining activities at the location will be redirected toward data center functions, according to Core Scientific's announcement. The organization further stated that construction of the initial data hall has finished its foundational phase and is now progressing into vertical building stages, with opening capacity anticipated in early 2027.
The organization has additionally locked in another 300 megawatts of electrical power through an agreement with its energy utility partner, simultaneously revealing strategies for continued growth via a behind-the-meter implementation approach.
Beyond Core Scientific, additional mining companies are similarly investigating diversified income opportunities as cryptocurrency mining profit margins become increasingly compressed, placing particular emphasis on artificial intelligence applications. During February, MARA Holdings purchased a controlling 64% ownership position in the French infrastructure enterprise Exaion, broadening its reach into AI-related services. Additional mining operators, such as Hive, Hut 8, TeraWulf and Iren, are likewise converting their mining operations into data center facilities.
Core Scientific acquires 200 acres
In order to facilitate the construction project, Core Scientific indicated it has purchased in excess of 200 acres of property within the region.
During the previous week, the organization also disclosed intentions to generate $3.3 billion via senior secured notes with a maturity date in 2031 to finance data center development throughout Georgia, Texas, North Carolina and Oklahoma. This financial maneuver comes after a distinct $1 billion credit arrangement obtained from Morgan Stanley during March.
Core Scientific has traditionally derived the majority of its income from mining digital currencies, though it has been progressively expanding its concentration on infrastructure-related services. The organization maintains operational facilities throughout multiple US states, encompassing Texas, Georgia and North Carolina.
NYDIG to buy idle New York smelter
According to Cointelegraph's coverage, Alcoa is nearing completion of a transaction to sell its inactive Massena East smelting facility located in upstate New York to the Bitcoin mining company NYDIG, with the agreement projected to finalize around the middle of the year. The industrial plant has remained non-operational since 2014, following its closure resulting from elevated energy expenses and international market pressures.
At the beginning of this year, Century Aluminum similarly divested its Hawesville smelting operation in Kentucky for a purchase price of $200 million to cryptocurrency mining enterprise TeraWulf, which intends to transform the facility into a high-performance computing and artificial intelligence installation.