Summary
- Core Scientific said it is converting its Pecos site in Texas into an AI data center hub and pursuing infrastructure with up to 1.5 gigawatts of capacity.
- The company plans to shift about 300 megawatts of power previously used for Bitcoin mining to data center operations, with about 1 gigawatt of the total set aside for lease to external customers.
- Core Scientific is funding the expansion through $3.3 billion in secured notes and a $1 billion credit facility, as the shift to AI infrastructure emerges as a new revenue model.
Forecast Trend Report by Period
Bitcoin mining companies are moving to diversify their revenue models, and Core Scientific is stepping up its expansion into artificial intelligence infrastructure.
Core Scientific is converting its site in Pecos, Texas, into an AI data center hub and is pursuing infrastructure with up to 1.5 gigawatts of power capacity, according to crypto-focused media outlet Cointelegraph on April 28.
The plan includes shifting about 300 megawatts of electricity previously used for Bitcoin mining to data center operations. The company plans to develop the site as a colocation facility built to support high-density AI computing.
About 1 gigawatt of the total capacity will be operated in a form that can be leased to external customers. The initial data center has completed foundation work and entered full-scale construction, with first operations slated for early 2027.
Core Scientific has also secured a 300-megawatt power supply agreement and is considering further expansion through behind-the-meter generation and other options. It has acquired more than 200 acres of nearby land to support a broader infrastructure expansion.
The company is also raising funds to expand the data center business. It recently announced plans to raise $3.3 billion through secured notes due in 2031, after securing a $1 billion credit facility from Morgan Stanley in March.
The industry increasingly views a shift into AI infrastructure as a key strategy as mining profitability comes under pressure. MARA Holdings entered the AI business by acquiring a stake in French infrastructure company Exaion, while Hive, Hut 8 and TeraWulf are also converting mining facilities into data centers.
The market sees crypto-mining infrastructure as having strong potential to become a new revenue model as demand for AI computing converges with existing power capacity and operating sites.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
