Core Scientific plans to refurbish its data center in Denton, Texas, turning it from a crypto facility into an AI site.

The company plans to spend as much as $6.1 billion on the new campus, the Denton City Council said, with a planned launch in 2027. The investment is expected to lead to $194 million in property tax over a decade.

As part of the deal, the City of Denton will lease 78.85 acres near the Denton Energy Center gas plant to Core Scientific for private use.

Core Scientific will be responsible for costs associated with the electrical interconnection infrastructure, and did not apply for tax incentives from the City of Denton. It has applied to the State of Texas for incentives and abatements.

The expansion is expected to lead to an estimated 300 full-time, on-site positions, and over 200 independent jobs. Core Scientific will have access to 394MW of power.

“Denton’s trajectory is highly promising, and our expanding infrastructure makes the city an ideal hub for corporate investments,” City Manager Sara Hensley said.

“As we grow, Denton is committed to responsible development that enhances our livability and provides an opportunity for our educational institutions to serve as a workforce pipeline. This site will serve as a model for high-performing computing innovation.”

The Denton data center was Core Scientific’s first Bitcoin mining facility in Texas, and opened three years ago.

“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 Adam Sullivan, Core Scientific CEO.

“We have had a great experience operating in Denton and are grateful for the strong support we’ve received from the city staff and community members. We look forward to continuing our partnership with the City of Denton as we expand our infrastructure to support high-performance computing.”

The company currently operates nine data centers in six different states: Alabama, Georgia, Kentucky, North Carolina, North Dakota, and Texas. It also has a data center under development in Oklahoma.

In its third quarter, the company posted a net loss of $455.3m, mostly due to a net $408.5m non-cash mark-to-market adjustment to its warrants.

The company said that it has contracted around 500MW of revenue-generating critical IT load for its AI/HPC hosting business.

https://www.datacenterdynamics.com/en/news/core-scientific-plans-to-upgrade-denton-texas-data-center-for-up-to-61bn/