Bitcoin miner Core Scientific is scaling back its cryptocurrency operations and moving into artificial intelligence infrastructure. The company announced plans to turn its Pecos, Texas, site into a large AI-focused data center campus with up to 1.5 gigawatts of gross power capacity.
Massive capacity shift
Of that planned capacity, about 1 gigawatt is expected to be available for leasing. The company said it is developing the site into a high-density colocation hub for AI workloads. Demand for such computing power has been rising sharply.
Core Scientific CEO Adam Sullivan said the company is using its deep in-house expertise to build and scale AI infrastructure. But I think it’s also a sign that mining margins are getting tighter, so miners are looking for other revenue streams.
Repurposing mining infrastructure
About 300 megawatts currently used for Bitcoin mining at the Pecos site are being repurposed for data center operations. The first data hall has completed foundational work and is moving into vertical construction. Initial capacity is expected to be ready by early 2027.
The company also secured an additional 300 megawatts of power under contract with its utility provider. It outlined plans for further expansion through a behind-the-meter solution, which could help manage energy costs.
Other miners are following similar paths. MARA Holdings recently acquired a 64% stake in French infrastructure firm Exaion to expand into AI services. Hive, Hut 8, TeraWulf, and Iren are also repurposing mining facilities into data centers.
Land acquisition and financing
Core Scientific acquired more than 200 acres of land in the Pecos area to support the buildout. The company also announced plans to raise $3.3 billion through senior secured notes due 2031 to fund data center expansion across Georgia, Texas, North Carolina, and Oklahoma. This follows a separate $1 billion credit facility from Morgan Stanley secured in March.
Market performance
Core Scientific shares are up 44% year to date. The company has historically generated most of its revenue from mining digital assets but has been increasing its focus on infrastructure services. It now operates facilities across several US states.
In a related development, Alcoa is close to selling its long-dormant Massena East smelter in upstate New York to Bitcoin mining firm NYDIG. The deal is expected to close by mid-year. The plant has been unused since 2014 due to high energy costs. Earlier this year, Century Aluminum sold its Hawesville smelter in Kentucky to crypto miner TeraWulf for $200 million, which plans to convert it into a high-performance computing and AI facility.
