Three years after setting up their first Bitcoin mining facility in Denton, Texas, Core Scientific Inc is now planning to transform the location into a data center to bolster support for AI.
Core Scientific is looking to put in around $6.1 billion for an overhaul of the Bitcoin mining setup at 8170 Jim Christal Road, to the Denton Energy Center area. Updates from community gatherings shed light on the substantial real estate and tech venture, soon to be in the works.
“Denton has been the location of one of our cutting edge data facilities ” mentioned Adam Sullivan—the CEO of Core Scientific—anticipating that it will soon accommodate one of the GPU supercomputers, in North America dedicated to driving intelligence forward.”
Revisions to purchasing power agreement
The Denton City Council gave the light to changes, in an agreement for purchasing power and leasing land with the company on November 19th of 2024. According to city estimates the established AI data center of the company is expected to bring about $194 million, in property tax revenue over a span of ten years. As Denton manages its power supply the influx of new users is projected to boost the city’s revenue significantly.
Additionally, Core Scientific plans to rent 79 acres of city owned property in Austin and construct two substations, on site as part of its agreement with the city back in 2021 for their Bitcoin mining operation – touted as Texas pioneering venture, in the field.
After the data center is finished in 2027 it will also have office space, for use. The city anticipates that the center will employ 300 individuals and support additional independent service operations. The city also anticipates that the upcoming AI data center by Core Scientific could contribute, over $430 million to Dentons revenue in a span of 10 years.
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The fresh deal
The initial contract involved Core renting 31 acres of land owned by the city and having access, to 297 megawatts of power supply. The updated agreement now extends the lease to cover 78 acres and provides access, to a total of 394 megawatts of power.
“Dentons future looks bright ” mentioned Sara Hensley, the City Manager of Denton. “With our city’s growth and infrastructure improvements ” she continued, “we aim to attract business investments while ensuring development that improves our quality of life and supports our educational institutions in preparing the workforce of tomorrow.” She highlighted Core Scientifics AI data center as a step, towards pioneering advanced computing solutions.
In 2022 amidst a decline, in prices and a surge in energy costs cryptocurrency firms including Core Scientific sought Chapter 11 bankruptcy protection. Following court endorsement for its restructuring efforts the company successfully emerged from bankruptcy proceedings in January. Notably during the third quarter earnings briefing Chief Financial Officer Denise Sterling highlighted a loss of $455 million which was higher, than the $414 million loss recorded in the preceding years period.
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Core Scientific’s AI Data Center in Denton, Texas: Project Factsheet
Project Overview
Location: 8171 Jim Christal Road, Denton, Texas
Project: Converting Bitcoin mining facility to AI data center
Investment Details
Projected Investment: $6.1 billion
Land Lease: 78.85 acres of city-owned land
Power Access: 394 megawatts
Economic Projections
Estimated Property Tax Revenue: $194 million (10 years)
Projected Employment: 300 people
Core Scientific’s data center in Denton: Project Timeline
Planned Completion: 2027
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