Austin-based Core Scientific is working to convert all of its Bitcoin mining operations in Denton into data centers. The company will invest an estimated $4 billion to make it happen pending key city approvals.
The Denton City Council will vote on several measures that would allow the conversion and expansion at 8171 Jim Christal Road in a specially-called meeting Tuesday evening. The items passed Denton’s public utilities board Monday.
Under the agreements, Core Scientific would expand its footprint by nearly 43 acres — doubling its current size. The firm would also pay the city an additional $5 million after a proposed land swap was removed from the agreement, according to city officials.
Representatives for Core Scientific did not respond to inquiries.
The site was partially built out in 2021 but the project’s third phase was not completed after Core Scientific filed for bankruptcy reorganization.
The company is looking to resume work and now wants to convert the entire site into high-performance computing for artificial intelligence, according to city documents.
A fourth phase will be added after the required transmission system upgrades are complete. The first data center conversions may be finished in late 2025. Physical site transmission improvements are expected to be finished between 2027 and 2029.
The work is part of Core Scientific’s post-bankruptcy push toward artificial intelligence-focused data centers.
Core Scientific reached a deal earlier this year with cloud-computing firm CoreWeave to improve its AI capabilities. The Austin-based firm said it planned to convert part of its crypto mining infrastructure to power high-performance computing operations for AI companies.
The U.S. Bankruptcy Court for the Southern District of Texas approved the bitcoin miner’s emergence from bankruptcy in January.
In April, Core Scientific announced a 72-megawatt expansion at the Denton site. Completion of partially built structures would increase the total operational infrastructure at its Denton data center to 197 megawatts. The work was to be completed by the end of June, according to a news release.
The Denton City Council originally approved Denton Municipal Electric’s requests to amend a power purchase agreement with Core Scientific in August.
The change was part of Core Scientific’s pivot towards high-performance computing operations. The firm doesn’t plan to power down its AI computing during peak hours or when energy prices increase. High-powered computing for AI requires continuous operation and air conditioning to remain cool.
Denton’s public utilities board approved another amended power purchase agreement, a lease amendment, a value consideration loss payment and a temporary construction easement during its Monday meeting.
The firm did not ask for tax abatements or economic incentives from the city of Denton, city officials said.
