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.