DFW Crypto Mine Set for Stunning $6 Billion Transformation!
Once the beating heart of Bitcoin mining, a game-changing data center in Denton, Texas is about to pivot into a powerhouse for artificial intelligence.
DENTON, Texas — This article was originally published by our content partners at the Dallas Business Journal. For the full scoop, check out the original article here.
After establishing what it hailed as Texas’ *first* Bitcoin mining facility just three years ago, Core Scientific Inc. is now making waves by transforming this site into a cutting-edge data center dedicated to artificial intelligence.
Core Scientific is set to invest a staggering $6.1 billion into this ambitious project, which will take place at 8171 Jim Christal Road, conveniently located near the Denton Energy Center. Exciting new developments are emerging following a series of public meetings that have left the community buzzing.
On November 19, the Denton City Council unanimously approved amendments to a power purchase agreement and land lease with Core Scientific. This expansion is projected to generate an impressive $194 million in property tax revenue over the next decade, boosting the city’s finances significantly. With Denton managing its own electricity, new large-scale users like Core Scientific are a win-win for local revenue.
Based in Austin, Core Scientific (Nasdaq: CORZ) will lease 78.85 acres of city-owned land and construct two state-of-the-art substations. Back in 2021, the company made headlines with its groundbreaking deal to launch its Bitcoin mining facility, which it proudly called the first of its kind in Texas.
Under the initial agreement, Core Scientific leased around 31 acres with access to 297 megawatts of power. With the new deal, they’re expanding to 78 acres and ramping up their power access to a whopping 394 megawatts, according to company representatives.
“Denton has been home to one of our most advanced data centers, and we are thrilled to expect that it will soon host one of the largest GPU supercomputers in North America, driving the future of artificial intelligence,” stated Adam Sullivan, CEO of Core Scientific.
Interestingly, the company opted not to seek any city-level incentives or abatements, showcasing a commitment to a straightforward partnership with Denton.
The future data center will also feature office space, potentially creating 300 jobs by the time it opens in 2027, with many more roles supported by its operations.
Excitingly, the city anticipates that this development could inject more than $430 million into Denton’s tax base over the next decade.
“Denton’s growth trajectory looks incredibly promising, and our expanding infrastructure positions the city as a prime location for corporate investments,” said Denton City Manager, Sara Hensley. “As we evolve, Denton remains committed to responsible development that enhances quality of life and fosters our educational institutions as vital workforce pipelines. This site is set to become a shining example of high-performance computing innovation.”
Core Scientific is one of several crypto companies that faced challenges in 2022, filing for Chapter 11 bankruptcy amid plummeting crypto prices and rising energy costs. Having emerged from bankruptcy in January, the company received court approval for its restructuring plan. During its third-quarter earnings call, CFO Denise Sterling revealed a net loss of $455.3 million, slightly worse than the prior year’s loss of $414.1 million.
Sterling indicated a shift away from Bitcoin mining while also confirming the completion of a 100-megawatt expansion at a West Texas mining center in Pecos. The company is moving forward with plans to demolish two outdated data centers aimed at high-performance computing and has secured an impressive $8.7 billion contract with cloud computing giant CoreWeave Inc., which they previously turned down in an acquisition offer.
“We are actively engaging with multiple potential clients regarding our new capacity and growth plans,” Sterling mentioned. “Our discussions include hyperscalers and AI cloud service providers.”
