Core Scientific’s (Nasdaq: CORZ) revised lease agreements and power contracts with the city of Denton will facilitate the expansion of its existing facilities, securing access to 394 megawatts of power. This represents a significant upgrade from the original allocation of 297 megawatts. The transition aligns with Core Scientific’s pivot from bitcoin (BTC) mining to AI-centric data processing, which offers stable, long-term revenue compared to cryptocurrency’s volatility.
The Denton campus expansion is part of Core Scientific’s broader strategy to allocate more of its nine U.S.-based data centers to AI applications. CEO Adam Sullivan noted that the site is expected to host one of North America’s largest GPU supercomputers. The move also reflects a trend among bitcoin mining companies adapting to the AI boom. Peers such as Terawulf and Bit Digital have similarly diversified into high-performance computing.
The Denton city council approved amendments to Core Scientific’s agreements earlier this week, enabling the company to lease an additional 47 acres, bringing its total to 78 acres. Core Scientific insists the expansion is expected to create 130 to 300 full-time jobs, with salaries averaging $70,000 to $75,000 annually. The company is also pursuing state-level incentives to offset costs.
This shift follows Core Scientific’s emergence from bankruptcy in January. By diversifying its operations, the firm aims to establish itself as a leading data center provider while continuing limited bitcoin mining operations. The company reported that its ongoing contracts with AI clients, such as Coreweave, total $8.7 billion in value over 12 years.
Despite the financial opportunities, the energy-intensive nature of such projects raises concerns among local officials. With demand for AI and data center infrastructure surging, the debate over balancing development and resource allocation remains ongoing.