Bitcoin miner Core Scientific plans to scale its Texas operations into a large artificial intelligence-focused data center campus with up to 1.5 gigawatts of gross power capacity.

In a Monday announcement, the company said it is developing its Pecos, Texas, site into a high-density colocation hub designed to support AI workloads amid rising demand for computing infrastructure. Of the planned capacity, about 1 GW is expected to be available for leasing.

“We continue to leverage our deep in-house expertise to differentiate how we build and scale next generation artificial intelligence infrastructure,” Adam Sullivan, CEO of Core Scientific, said.

As part of the transition, roughly 300 megawatts currently used for Bitcoin mining at the site are being repurposed for data center operations, Core Scientific said. The company added that the first data hall has completed foundational work and is moving into vertical construction, with initial capacity expected in early 2027.

The company has also secured an additional 300 megawatts of power under contract with its utility provider, while outlining plans for further expansion through a behind-the-meter solution.

Aside from Core Scientific, other miners are also exploring alternative revenue streams as mining margins tighten, with a focus on AI. In February, MARA Holdings acquired a 64% stake in French infrastructure company Exaion, expanding into AI services. Other miners, including Hive, Hut 8, TeraWulf and Iren, are also repurposing mining facilities into data centers.

Core Scientific acquires 200 acres

To support the buildout, Core Scientific said it has acquired more than 200 acres of land in the area.

Last week, the company also announced plans to raise $3.3 billion through senior secured notes due 2031 to fund data center expansion across Georgia, Texas, North Carolina and Oklahoma. The move follows a separate $1 billion credit facility secured from Morgan Stanley in March.

Core Scientific has historically generated most of its revenue from mining digital assets, but has been increasing its focus on infrastructure services. The company operates facilities across several US states, including Texas, Georgia and North Carolina.

NYDIG to buy idle New York smelter

As Cointelegraph reported, Alcoa is close to selling its long-dormant Massena East smelter in upstate New York to Bitcoin mining firm NYDIG, with the deal expected to close by the middle of the year. The plant has sat unused since 2014, when it was shut down due to high energy costs and global competition.

Earlier this year, Century Aluminum also sold its Hawesville smelter in Kentucky for $200 million to crypto miner TeraWulf, which plans to convert it into a high-performance computing and AI facility.