Core Scientific to Convert Texas Bitcoin Mining Site Into 1.5GW AI Data Center

The company says its Pecos, Texas facility will shift part of its Bitcoin mining capacity to high-density artificial intelligence colocation, with about 1GW planned for external customers and first operations targeted for early 2027.

BTC

Summary

Core Scientific plans to transform its Pecos, Texas Bitcoin mining site into a 1.5-gigawatt high-density AI colocation data center, marking a significant pivot from crypto mining infrastructure toward artificial intelligence computing services. The company said about 1 gigawatt of capacity will be available for external leasing, while roughly 300 megawatts of existing mining capacity will be reassigned. The first data hall is expected to begin operating in early 2027. To finance the buildout, Core Scientific plans to use $3.3 billion in senior secured notes (debt backed by company assets) along with a previously secured $1 billion credit facility from Morgan Stanley.

Terms & Concepts
  • AI colocation: A data center model in which customers lease power, space, and cooling to run artificial intelligence hardware without building their own facilities.
  • Senior secured notes: Corporate debt backed by pledged assets, giving lenders higher repayment priority than unsecured creditors if a borrower defaults.
  • Gigawatt and megawatt: Units of electrical capacity commonly used to measure large-scale data center and Bitcoin mining operations, with 1 gigawatt equal to 1,000 megawatts.