Core Scientific to convert Bitcoin mining site into AI data center
Core Scientific, one of the major Bitcoin miners, plans to transform its Texas facility into a large-scale data center focused on artificial intelligence. The company aims to develop its Pecos site into a campus with up to 1.5 GW of total power capacity, with around 1 GW available for lease to clients.
In a press release, Core Scientific said the site will become a high-capacity hub for AI workloads, citing growing demand for computing infrastructure. According to CEO Adam Sullivan, the company is leveraging its in-house expertise to build and scale next-generation AI infrastructure.
As part of the transition, approximately 300 MW of power currently used for Bitcoin mining will be redirected to data center operations. The first data hall has already completed foundational work and is moving into vertical construction, with initial capacity expected in early 2027.
Core Scientific has also secured an additional 300 MW of power under contract with its energy provider and is exploring further expansion through behind-the-meter solutions, meaning direct access to power sources. To support the project, the company has acquired more than 200 acres of land in the area.
Which miners are moving into AI
Core Scientific’s shift reflects a broader trend among mining companies. As Bitcoin mining margins decline, firms are searching for new revenue streams and increasingly turning to AI. 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 also converting mining sites into data centers.
To finance its expansion, Core Scientific previously announced plans to raise $3.3 billion through secured notes maturing in 2031. These funds will be used to develop data centers in Georgia, Texas, North Carolina, and Oklahoma. In addition, the company secured a $1 billion credit facility from Morgan Stanley in March.
Historically, Core Scientific generated most of its revenue from digital asset mining, but it is now increasingly shifting toward infrastructure services. A similar transition is taking place across the industry, where underutilized industrial sites, including former aluminum smelters, are being repurposed into high-performance computing and AI facilities.
Why mining is no longer as profitable
Bitcoin mining is gradually becoming less profitable due to a combination of factors. First, the halving event — which occurs roughly every four years — cuts mining rewards in half. After the most recent halving in 2024, miners’ revenues dropped significantly, while costs remained the same or even increased. Second, competition is intensifying: more computing power is joining the network, mining difficulty is rising, and it takes more resources to produce each BTC.
Additional pressure comes from energy prices and equipment costs. In an environment of high interest rates and expensive capital, maintaining and upgrading infrastructure becomes more difficult, especially for publicly traded companies with debt obligations. As a result, miners are looking for more stable sources of income. This is why many, including Core Scientific, are redirecting capacity toward AI and high-performance computing, where demand is growing faster and revenues are more predictable.
It is worth noting that last month Core Scientific secured a credit facility of up to $1 billion from Morgan Stanley.
Latest Core Scientific News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
