Core Converts Denton Bitcoin Mine to HPC, Secures Expansion Capacity
Core Scientific (NASDAQ: CORZ) has secured approval to expand its data center operations in Denton, Texas, transitioning the site’s utility from Bitcoin mining to high-performance computing (HPC) hosting.
In a release on Wednesday, Core said that the Denton City Council had approved amendments to its power purchase agreements and land leases. As part of the changes, Core doubled its leased land from 31 acres to 78 acres and increased its access to power from 297 megawatts (MW) to 394 MW.
According to local media reports, Core will pay the city an additional $5 million after removing a proposed land swap from the agreement. The facility, initially built for Bitcoin mining in 2021, halted construction in 2022 following Core’s Chapter 11 bankruptcy filing.
The Dallas Morning News reported that Core is working on converting the Denton facility entirely to HPC hosting for artificial intelligence (AI) clients and the first data center conversions “may be finished in late 2025, with site transmission improvements anticipated between 2027 and 2029.”
Core claimed in Wednesday’s release that the expansion would result in a $6.1 billion real property investment. “Denton has been home to one of our most advanced data centers, and now we expect it will host one of the largest GPU supercomputers in North America, powering artificial intelligence,” said Core Scientific CEO Adam Sullivan.
Meanwhile, Core’s Bitcoin mining revenue declined by 38%, falling from $110 million in Q2 to $68 million in Q3, due to the Bitcoin Halving and increasing competition from major rivals.
