Core Scientific to Convert Bitcoin Mining Site to Data Center

Core Scientific is moving forward with plans to convert its Bitcoin mining operation in Denton into a $4 billion data center project.

The Austin-based tech company secured city council approval Tuesday on several measures relating to its proposed redevelopment and 43-acre expansion at 8171 Jim Christal Road, the Dallas Morning News reported. The redevelopment is part of Core Scientific’s push to position itself in the growing field of AI technology after emerging from bankruptcy earlier this year.

Core Scientific’s decision to convert its entire facility into high-performance computing space dedicated to artificial intelligence will see it double its existing footprint by 43 acres. As part of the deal, the company, headed by CEO Adam Sullivan, will pay $5 million to Denton after a land swap provision was removed from the agreement, according to city officials.

The first phase of the company’s data center conversion could be completed late next year, with upgrades to the transmission system expected to take place between 2027 and 2029. A key part of the company’s transition includes a partnership with cloud-computing company CoreWeave, aimed at enhancing Core Scientific’s AI computing capabilities.

Despite the scale of the investment, Core Scientific has not requested tax incentives or abatements from the City of Denton. Instead, the company is focusing on expanding its infrastructure to support the growing demand for high-performance computing, particularly for AI firms.

By expanding the facility, Core Scientific will add 72 megawatts of power capacity, significantly increasing the site’s overall operational infrastructure. The planned transformation also helps cement North Texas as one of the nation’s leading data center hubs.

Some of the data center projects shaping the metroplex include DataBank’s $256 million facility in Red Oak, known as “DFW10,” which is part of a larger campus development south of Dallas.

Google is also developing a $600 million data center in Red Oak to enhance its digital services.

Additionally, Prime Data Centers is investing $3 billion to build facilities in southwest Fort Worth and Garland, while QTS Data Centers is embarking on a $220 million project in North Fort Worth

— Andrew Terrell