Core Scientific, a leading crypto mining company, is set to transform its Pecos, Texas facility from a Bitcoin mining hub into a high-density data center focused on artificial intelligence. According to the company’s latest announcement, it will repurpose roughly 300 megawatts of its current BTC mining capacity into the new data center infrastructure.
Massive AI capacity planned
The company envisions developing its Texas site into a cutting-edge AI data center campus with a total potential of 1.5 gigawatts. Of this, Core Scientific plans to make around 1 gigawatt available as leasable infrastructure. The initial data hall’s main construction is now complete, with vertical structuring underway. The first segment of data capacity is expected to become operational in early 2027.
CEO Adam Sullivan highlighted how Core Scientific is drawing upon its expertise to build and scale the next wave of AI infrastructure:
What matters to us is using our knowledge to design and expand advanced AI platforms in ways that set us apart from competitors, Adam Sullivan explained.
Additionally, Core Scientific has secured a new power purchase agreement for an extra 300 megawatts from its energy supplier. The company is also developing innovative solutions to further boost energy efficiency at the site.
Transitioning from crypto mining to AI
Headquartered in the United States, Core Scientific has been a major player in digital asset mining, generating substantial revenue from Bitcoin operations. Recently, it has been pivoting towards data center and infrastructure services, broadening its business footprint. Bolstered by facilities in several states, the company’s shares have surged by 44 percent since the start of the year.
During the initial phase of its transition, Core Scientific will redirect 300 megawatts directly into AI-centric systems. The firm has also acquired over 200 acres of land in the region. Last week, it announced plans for a $3.3 billion bond offering, set to mature in 2031, to finance data center investments across Georgia, Texas, North Carolina, and Oklahoma. In March, the company secured a $1 billion credit facility from Morgan Stanley.
Industry-wide AI shift accelerates
Shrinking mining profits have prompted not only Core Scientific but also other major mining companies to refocus on AI. In February, MARA Holdings acquired 64 percent of French infrastructure firm Exaion, gaining a foothold in AI services. Meanwhile, companies like Hive, Hut 8, TeraWulf, and Iren are converting their mining operations into data centers, seeking new revenue streams.
Since last year, Alcoa has been preparing to sell its dormant Massena East plant in New York to Bitcoin mining firm NYDIG; the facility has been unused since 2014. Also this year, Century Aluminum sold its Hawesville, Kentucky plant to TeraWulf for $200 million. TeraWulf aims to convert the former facility into a high-performance AI and computing center.
Thanks to its forward-looking moves, Core Scientific continues to play a key role in both the crypto mining and data center sectors as these industries converge.
