Core Scientific is driving a transformational shift in its business model as it plans to transform its Pecos, Texas, campus into a high-density AI-centric data center complex capable of reaching up to 1.5 gigawatts of total power capacity. The company said about 1GW of that capacity will be available for lease, signaling a shift toward AI computing infrastructure beyond traditional cryptocurrency mining amid growing demand for data center capacity.
In a press release issued Monday, Core Scientific described the transition as part of its strategy to differentiate itself in building next-generation AI infrastructure using its in-house engineering capabilities. The project’s initial data hall has completed groundwork and the company is transitioning to vertical construction, targeting first capacity in early 2027. Core Scientific noted that approximately 300 megawatts of power at the Pecos site, previously allocated to Bitcoin mining, is being repurposed for new data center operations.
The expansion is supported by a new power agreement that includes an additional 300 megawatts secured under agreements with local utility providers and land acquisition to support scale. Core Scientific said it has acquired more than 200 acres of land in the Pecos area to accommodate construction.
The company also disclosed extensive financing plans to fund its expansion, revealing plans to raise about $3.3 billion through senior securities through 2031 to finance data center development in several states, including Georgia, Texas, North Carolina and Oklahoma. This follows the securing of a separate $1 billion senior credit facility from Morgan Stanley in March and highlights the capital-intensive path to building AI-enabled infrastructure at scale.
Core Scientific has historically derived a significant portion of its revenue from mining digital assets, but has increasingly shifted to providing infrastructure services. The Pecos project demonstrates how miners are repurposing existing facilities to take advantage of continued demand for AI computing capabilities, even as mining economies face ongoing pressure.
Shares of Core Scientific are up about 44% so far this year. Source: Yahoo Finance
Key Takeaways
- Core Scientific aims to build a data center campus in Pecos, Texas, with a total capacity of up to 1.5 GW, of which approximately 1 GW will be available for lease to customers for AI workloads.
- Approximately 300 MW of power previously used for Bitcoin mining in Pecos is being repurposed for data center operations, with the first data hall expected to deliver initial capacity in early 2027.
- The company has acquired more than 200 acres in Pecos to support construction and has secured additional power contracts totaling approximately 600 MW when combined with existing contracts.
- The financing includes a $3.3 billion plan through senior secured notes due 2031, complemented by a $1 billion Morgan Stanley credit facility, signaling a broader push for AI-enabled infrastructure in multiple states.
Core Scientific Expands Pecos: From Mining to AI Data Center
The Pecos plan represents an intentional shift from pure mining activities to high-density AI computing, leveraging Core Scientific’s engineering expertise to design a scalable data center-centric infrastructure. The company highlighted that the first data hall has progressed to vertical construction with initial capacity expected to be operational in early 2027. Repurposing approximately 300 MW of the site’s existing electricity load highlights broader industry trends. As demand for computing power grows beyond blockchain verification, crypto facilities are increasingly being repurposed to support AI workloads.
Adam Sullivan, CEO of Core Scientific, emphasized the strategic rationale: “We continue to leverage our deep internal expertise to differentiate how we build and scale the next generation of artificial intelligence infrastructure.” This sentiment reflects the industry’s broader efforts to transform cryptocurrency-era assets into flexible AI-powered data centers capable of running GPU-intensive workloads, model training, and inference at scale.
The Pecos project also includes the acquisition of more than 200 acres of land assets by Core Scientific to support long-term expansion in line with plans to deploy significant capacity on a single campus. The plan to allocate approximately 1 GW for lease is consistent with a perceived demand gap in the premium AI computing space, particularly for operators seeking co-location and predictable power contracts.
Construction Financing: Debt, Power and Land
Funding the push for multi-state data centers in the hundreds of megawatts will require patient capital. Core Scientific’s plan to raise approximately $3.3 billion through senior notes due 2031 marks a shift from opportunism to a structured capital strategy designed to sustain multi-year construction, supply power capacity and support ongoing operations as customers come online. This financing plan runs parallel to the $1 billion Morgan Stanley credit facility announced earlier this year. Morgan Stanley described this as part of a broader financing framework to accelerate data center development across Georgia, Texas, North Carolina and Oklahoma.
Power availability remains a key constraint in the AI data center equation. Core Scientific’s expansion in Pecos depends on securing reliable, scalable power from local energy markets that have historically supported large-scale computing deployments. The company’s additional 300 MW under contract with local utility providers will help reduce the risk of the project, but ongoing power planning and grid adjustments will be critical as the campus expands to a total capacity of 1.5 GW.
In addition to Pecos, Core Scientific’s strategy includes pursuing further expansion through behind-the-scenes solutions and additional land acquisitions to maintain its long-term growth trajectory. The company’s move reflects a broader trend among cryptocurrency miners. Diversify your revenue streams by transforming your facility into a data center capable of hosting AI workloads. This is a market dynamic that is appealing to investors seeking exposure to AI computing infrastructure without fluctuations in mining cycles.
Widespread AI infrastructure transformation in cryptocurrency mining
Core Scientific is not alone in this field. The sector has seen several peers exploring revenue streams related to AI computing and data center capabilities alongside mining operations. In February, MARA Holdings disclosed that it had acquired a 64% stake in Exaion, a French infrastructure company expanding into AI services, signaling a strategic move to expand its AI-focused offerings beyond traditional mining. A broad lineup of miners such as Hive, Hut 8, TeraWulf, and Iren have also signaled and undertaken steps to repurpose their mining facilities into data centers or AI-centric campuses as mining margins shrink and AI workloads soar. MARA’s stake in Exaion is a notable example of this trend.
Developments related to the energy-to-AI transition include reported short-term sales of idle assets in the industrial sector. Alcoa plans to sell its Massena East smelter in upstate New York to NYDIG. The deal is expected to close in the middle of this year, as the plant has not been operational since 2014 due to high energy costs and global competition. The move coincides with a broader wave of cryptocurrency miners looking to lock AI data center capacity into repurposed industrial assets. The $200 million sale of Massena East and Century Aluminum’s Hawesville smelter to TeraWulf, which converted it into a high-performance computing and AI facility, shows this trend in action. Century Aluminum Hawesville has been cited in industry reports as part of the industry’s wave of transition to AI data centers.
The combination of higher AI computing demands, capital-intensive deployments, and repurposing mining infrastructure suggests a structural shift in how cryptocurrency players participate in the data center economy. This trend is also consistent with the widespread adoption of AI data center backbones that have quietly emerged in the cryptocurrency era, highlighting how assets in the sector are being repurposed to support the next generation of digital infrastructure. CoreWeave and related reporting have highlighted this dynamic for investors looking for more than immediate mining yields.
what to see next
As Core Scientific moves toward its 2027 capacity target, investors and industry observers will be watching several key factors, including the pace of vertical construction in Pecos, the timing and reliability of power delivery, and whether rental demand materializes at the expected scale. The financing package will also be closely scrutinized as the proceeds will be distributed across multiple sites and the ability to meet debt obligations and meet ongoing capital requirements is an important consideration for lenders and future project partners.
Beyond Core Scientific, we continue to see an AI forward pivot in the sector. The timing of Exaion’s AI deployment milestones, the integration of repurposed mining facilities into AI data centers, and the long-term profitability of these ventures will determine how cryptocurrency miners position themselves in a world where AI infrastructure investments are increasingly attractive to developers and institutions alike.
Readers should monitor updates from Core Scientific as project approvals progress, as well as any additional capital raising moves or land acquisitions that could indicate additional capacity expansion across the United States.