Bitcoin miner Core Scientific is expanding its Texas operations into a major AI-focused data center campus, targeting up to 1.5 gigawatts of total power capacity.
In a Monday announcement, the company said its Pecos, Texas site will be transformed into a high-density colocation hub built to handle growing demand for artificial intelligence workloads. Around 1 gigawatt of the planned capacity is expected to be available for lease.
CEO Adam Sullivan said the company is leveraging its in-house expertise to stand out in building and scaling next-generation AI infrastructure.
As part of the shift, roughly 300 megawatts currently dedicated to Bitcoin mining at the site will be redirected to support data center operations. Core Scientific added that foundational work on the first data hall is complete, with vertical construction now underway and initial capacity slated to come online in early 2027.
The company has also locked in an additional 300 megawatts of power through its utility provider and is exploring further expansion via a behind-the-meter solution.
Core Scientific isn’t alone in pivoting beyond Bitcoin mining as margins tighten, with many firms turning to AI-focused infrastructure. In February, MARA Holdings acquired a 64% stake in French infrastructure company Exaion to expand into AI services. Other miners—including Hive, Hut 8, TeraWulf, and Iren—are similarly converting mining facilities into data centers.
Core Scientific expands footprint
To support its growing ambitions, Core Scientific said it has acquired more than 200 acres of land near its Texas site.
The company also recently unveiled plans to raise $3.3 billion through senior secured notes due in 2031 to fund data center expansion across Georgia, Texas, North Carolina, and Oklahoma. This follows a separate $1 billion credit facility secured from Morgan Stanley in March.
While Core Scientific has historically relied on digital asset mining for revenue, it is increasingly shifting toward infrastructure services, with operations spanning multiple US states, including Texas, Georgia, and North Carolina.
Broader industry shift underway
The trend extends beyond Core Scientific. Alcoa is reportedly nearing a deal to sell its long-idled Massena East smelter in upstate New York to Bitcoin mining firm NYDIG, with the transaction expected to close by midyear. The facility has been inactive since 2014 due to high energy costs and global competition.
In another example, Century Aluminum sold its Hawesville smelter in Kentucky earlier this year to TeraWulf for $200 million, with plans to transform the site into a high-performance computing and AI facility.
