Core Scientific announced that its Pecos, Texas campus will be expanded to 1.5 GW of gross power, of which 1.0 GW will be available for lease to third‑party customers. The expansion builds on the company’s existing 300 MW of gross capacity that is currently used for Bitcoin mining and represents a strategic shift toward high‑density colocation for artificial‑intelligence workloads.
Construction is already underway: foundational footings have been laid, precast concrete walls are arriving, and the company has secured an additional 300 MW of gross power under contract with its utility provider. Core Scientific has also acquired more than 200 acres of land to support the expansion, positioning the site to accommodate the full 1.5 GW pipeline of leasable capacity expected to be operational in early 2027.
The move is part of a broader pivot from the volatile Bitcoin‑mining business to a more stable, long‑term AI data‑center model. CEO Adam Sullivan said, "By expanding in a market where we already control power, infrastructure, and operations, we can execute with speed to meet market demand." He added, "We continue to leverage our deep in‑house expertise to differentiate how we build and scale next‑generation artificial intelligence infrastructure, further illustrated by our behind‑the‑meter solution at our Pecos campus." Sullivan also noted that Core Scientific views itself as a digital infrastructure company, whether building data centers for Bitcoin mining or hosting hundreds of megawatts of Nvidia’s GB200, and that the company’s core competency is driven through large‑scale digital infrastructure.
Financially, Core Scientific’s Q1 2025 results showed a sharp decline in total revenue to $79.5 million from $179.3 million in Q1 2024, and an operating loss of $42.6 million, although net income of $580.7 million was largely driven by non‑cash warrant mark‑to‑market adjustments. The company remains unprofitable, but it has raised $3.3 billion in senior secured notes to fund the expansion and is pursuing long‑term contracts that Sullivan said provide "a lot of long‑term and free cash flow stability that investors really enjoy."
Analysts have responded with a moderate‑buy consensus, and the stock has risen 43 % year‑to‑date. While the expansion signals a clear strategic direction, investors remain cautious about the company’s current profitability and the cost intensity of scaling AI infrastructure. The company’s management has indicated that it is now past the halfway point on its existing builds and is scaling its colocation platform into a 1.5 GW pipeline of leasable capacity, underscoring confidence in the long‑term demand for AI workloads.
The expansion positions Core Scientific to capture a larger share of the high‑density colocation market, compete with other AI data‑center operators, and leverage its existing power contracts. However, the company must manage the capital intensity of the build, maintain cost discipline, and secure long‑term contracts to achieve profitability as it transitions from a mining‑centric model to a data‑center‑centric one.
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