Core Scientific to Convert Pecos Site into 1.5GW AI Campus

Core Scientific plans to convert roughly 300 megawatts of Bitcoin-mining capacity at its Pecos, Texas site and expand the campus to as much as 1.5 gigawatts of gross power to operate an AI-focused data center. The company expects about 1 gigawatt of capacity will be available for lease to customers running high-performance AI infrastructure.

The Pecos campus will be redeveloped into a high-density colocation hub to support AI workloads. Core Scientific reported it has acquired more than 200 acres around the site. The first data hall has completed foundational work and is in vertical construction, with initial capacity targeted for early 2027.

Core Scientific contracted an additional 300 megawatts of power with its utility provider and plans to add further capacity through a behind-the-meter solution to increase on-site available power.

To finance the expansion, the company announced plans to raise $3.3 billion through senior secured notes due in 2031. Earlier this year it secured a separate $1 billion credit facility from Morgan Stanley. The company said the financing will support data center development across Texas, Georgia, North Carolina and Oklahoma.

Core Scientific has generated most of its revenue from Bitcoin mining but has been expanding its infrastructure services and operating data center facilities in Texas, Georgia and North Carolina. Its shares have risen about 44% year to date.

Other mining firms are repurposing energy-intensive sites into data centers for AI and high-performance computing. Companies including Marathon Digital, Hive, Hut 8, TeraWulf and Iren have announced acquisitions or conversions to add large-scale compute capacity.

Core Scientific’s chief executive, Adam Sullivan, commented in the announcement: ‘We continue to leverage our deep in-house expertise to differentiate how we build and scale next generation artificial intelligence infrastructure.’