Core Scientific has announced a major pivot: transforming its Bitcoin mining facility in Pecos, Texas into a high-density AI co-location data center with a total power capacity of 1.5 GW. Approximately 1 GW of that capacity will be available for lease, signaling a strategic shift toward AI infrastructure.
Detailed Transformation Plan
The company will reallocate 300 MW of the site's existing mining capacity to data center operations. The first data hall is expected to go live in early 2027. To support this expansion, Core Scientific has acquired over 200 acres of additional land, significantly expanding its development footprint.
Funding and Expansion
Core Scientific aims to raise over $4 billion through a combination of $3.3 billion in senior secured notes and a $1 billion credit facility from Morgan Stanley. Proceeds will fund data center developments across Texas, Georgia, North Carolina, and Oklahoma, positioning the company as a key player in high-performance computing.
Industry Implications
The move reflects a broader trend of crypto miners pivoting to AI data center services. Bitcoin mining sites, with their existing power infrastructure and land reserves, are increasingly attractive for AI workloads requiring dense, low-cost compute. Core Scientific's hybrid model—retaining some mining capacity while leasing AI compute—offers a template for other miners seeking to diversify revenue streams. The company says it will dynamically adjust the balance between mining and AI compute to optimize shareholder value.