Core Scientific (NASDAQ: CORZ) is expanding its Oklahoma footprint through a $421 million acquisition of a neighboring bitcoin mining operation, as the company races to assemble gigawatt-scale power capacity for AI and high-performance computing customers.

This article first appeared in The Energy Mag. The original article can be viewed here. The Energy Mag (formerly The Miner Mag) provides news, data, and insights on the energy–compute–markets nexus.

The company said Tuesday it plans to scale its Muskogee, Oklahoma campus to roughly 1.5 gigawatts of gross power, or about 1 gigawatt of leasable capacity, by combining acquisitions, grid expansion and behind-the-meter generation strategies.

At the center of the expansion is Core Scientific’s agreement to acquire Polaris DS LLC, a bitcoin mining operator that controls 440 megawatts of contracted power through Oklahoma Gas & Electric. The site is already energized and actively operating, allowing Core to potentially accelerate delivery timelines for future AI customers compared with greenfield developments that can take years to secure utility approvals and transmission access.

The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and other conditions.

The deal highlights how large bitcoin mining campuses — originally built for energy-intensive cryptocurrency operations — are increasingly becoming strategic targets in the AI infrastructure race because they already possess scarce grid access, substations and high-capacity electrical infrastructure.

Core Scientific said construction has already started on a second, currently unleased 82.5 MW building at the Muskogee campus, with delivery expected in the fourth quarter of 2027. The company added that its existing 70 MW facility designed for Nvidia’s GB300 platform remains on track for delivery to a customer in the second quarter of 2026 following final testing and commissioning.

The Polaris acquisition would add roughly 40 acres adjacent to Core Scientific’s current Muskogee operations, including a substation and electric service agreements with OG&E. Under the agreement, Core will not acquire Polaris’ active mining business itself. Instead, the existing operations, employees, customer contracts and intellectual property will be transferred out before closing through a pre-closing reorganization.

Core Scientific said the existing mining operation will continue winding down in phases through mid-2028 under a temporary leaseback arrangement, while the company gradually repurposes the site for future high-density compute deployments.

The purchase price could rise to as much as $461 million if Polaris secures an additional 40 MW of firm electric capacity before the end of 2026 under an amendment to its utility agreement.

The agreement also reveals that Core Scientific has already placed $120 million into escrow deposits tied to the acquisition, including an initial deposit made in January. The company said the transaction will be funded using existing liquidity.

The Muskogee expansion represents the second major campus where Core Scientific is applying what Chief Executive Adam Sullivan described as a “multi-tiered” scaling strategy that combines acquisitions, development expertise and behind-the-meter power solutions.

The approach mirrors a broader trend across the AI infrastructure sector, where operators are increasingly pursuing existing bitcoin mining sites to bypass long utility interconnection queues and accelerate deployment timelines for hyperscale AI customers.

Core Scientific has emerged as one of the most aggressive bitcoin miners pivoting into AI infrastructure. The company previously disclosed plans to transform its Pecos, Texas campus into a roughly 1.5 GW data center development targeting about 1 GW of leasable capacity for high-density colocation customers.

The company is also building out multiple CoreWeave-related data center projects after signing long-term HPC hosting agreements with the AI cloud provider. Recent bond disclosures showed Core Scientific and CoreWeave expect to spend roughly $5.5 billion developing six data centers across five sites by the first half of 2027.

Oklahoma officials have increasingly promoted the state as a destination for AI and energy-intensive compute projects. Governor Kevin Stitt said Core Scientific’s expansion demonstrates how new behind-the-meter legislation and energy policies are helping attract large-scale infrastructure investment into the state.

This article first appeared in The Energy Mag. The original article can be viewed here. The Energy Mag (formerly The Miner Mag) provides news, data, and insights on the energy–compute–markets nexus.

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