Core Scientific, Inc. (Nasdaq: CORZ) ("Core Scientific" or “the Company”), a leader in bitcoin mining and application-specific digital infrastructure for emerging high-value compute, today announced the start of a project to complete a 72-megawatt expansion of the Company’s Denton, Texas data center.
“Owning and controlling all of our infrastructure with access to ready power gives us the strategic optionality to expand our mining capacity, deploy upgrades to our proprietary mining technology stack, reallocate miners to optimize for efficiency and even flex to alternative forms of compute when such opportunities arise,” said Adam Sullivan, Core Scientific’s Chief Executive Officer. “By expanding our capacity while focusing on fleet efficiency and hash rate productivity, we believe we will remain positioned for success in the post-halving environment.”
In addition to its 745-megawatts of operational infrastructure, Core Scientific owns 372 megawatts of partially built infrastructure at its two Texas data centers. The start of the Denton data center project represents the beginning of a multi-year program to complete the partially built infrastructure and expand the Company’s capacity by 372-megawatts. The goal of this expansion program is to deliver more than 20 additional exahash of mining hash rate at an average incremental cost of approximately $200,000 per megawatt, or less than half the cost of new construction or asset acquisition.
Core Scientific’s Denton, Texas data center currently operates 125 megawatts of bitcoin mining with total contracted power of approximately 300 megawatts. The Company’s Pecos, Texas data center currently operates 71 megawatts of bitcoin mining across two sites with total contracted power of 250 megawatts.
Mr. Sullivan continued, “The exceptional performance of our data center operations team recently enabled us to deliver 16 megawatts of capacity to our high-performance computing customer in Austin, Texas more than 30 days ahead of schedule. This achievement underscores our team’s ability to expand our infrastructure successfully and highlights the emerging growth opportunity in hosting alternative forms of compute.”
Core Scientific data centers representing more than 500 megawatts of operational bitcoin mining infrastructure are qualified to host alternative forms of compute, based on the Company’s flexible facility designs, their proximity to major metropolitan areas and access to high bandwidth fiber telecommunications infrastructure. The Company believes that the cost to convert some of its bitcoin mining infrastructure to alternative compute hosting is lower than for new construction and its completion time could be as much as 50% faster, delivering strong financial benefits to high-performance computing hosting clients.