Core Scientific (CORZ) Plans 1.5GW AI Data Center in Texas
Bitcoin mining heavyweight Core Scientific (NASDAQ: CORZ) is transforming its Pecos, Texas facility into a 1.5-gigawatt data center campus to meet surging demand for artificial intelligence (AI) infrastructure. The company announced on April 28 that the site will primarily support high-performance computing (HPC) workloads, marking a significant pivot from its traditional focus on Bitcoin mining.
Of the planned capacity, 1 gigawatt (GW) will be available for leasing to third parties. To support the buildout, Core Scientific acquired over 200 acres of land in Pecos and has secured an additional 300 megawatts (MW) of power via a new utility contract. The first data hall is already under construction, with operations slated to begin by early 2027.
A Strategic Shift Amid Tight Margins
This move underscores a broader trend among crypto mining firms diversifying into AI and HPC as mining profitability shrinks. Core Scientific, which emerged from Chapter 11 bankruptcy in January 2024, has been actively reallocating resources. Approximately 300 MW previously allocated to Bitcoin mining at the Pecos site are being repurposed for the AI data center. The company’s CEO, Adam Sullivan, highlighted Core Scientific's "in-house expertise" as a key factor in scaling next-gen AI infrastructure.
Core Scientific's pivot mirrors initiatives by other miners such as Marathon Digital (MARA), which acquired a 64% stake in French infrastructure firm Exaion in February, and Hive Blockchain, which has also entered the AI space. The shift is driven by increasing demand for AI data processing and tightening mining margins due to rising energy costs and Bitcoin's slower price growth.
Funding the Expansion
To finance its expansion, Core Scientific is raising $3.3 billion through senior secured notes due in 2031. This follows a $1 billion credit facility secured from Morgan Stanley earlier this year. The funds will not only facilitate the Pecos campus development but also support data center expansions in Georgia, North Carolina, and Oklahoma.
Shares of Core Scientific are up 44% year-to-date, reflecting investor optimism about the company’s strategic pivot. Bitcoin, the company’s primary revenue driver, is trading at $76,801.31 as of April 28, 2026, a marginal 0.03% decline over the past 24 hours.
Why It Matters
Core Scientific's transition is emblematic of a larger shift in the crypto mining industry. As AI workloads demand higher computational power, infrastructure originally designed for Bitcoin mining is proving adaptable for AI applications. This evolution not only diversifies revenue streams but also extends the utility of mining assets in a challenging market environment.
Looking ahead, the Pecos campus could play a pivotal role in Core Scientific's future growth, particularly as AI adoption accelerates globally. Investors and industry watchers will be keeping an eye on early 2027, when the first phase of the data center is expected to go online.