From Crypto to AI: A Texas City Bets Again

In Denton, Texas, a city once promise by crypto mining, the future is now in AI. Core Scientific, once a major crypto miner, is rebranding as an AI supercomputer hub. With a boost in power, they aim to create jobs and revenue. But the switch from volatile crypto to AI isn't simple, and not everyone's thrilled. Can Denton handle another big bet? Core Scientific's story starts in 2021, when the company offered Denton a lifeline. The city, deep in debt, agreed to a power deal that would double its energy use. But months later, Core Scientific filed for bankruptcy, leaving Denton in the lurch. Now, riding the AI wave, they're back with a new plan. The city's okayed an extra 100 megawatts, enough to power nearly 400, 000 homes. The AI boom has other crypto miners switching too. Companies like Core Scientific, Hut 8, and Bitdeer are all pivoting. They're transforming data centers to host powerful AI chips. Core Scientific's got a big contract with AI hyperscaler CoreWeave, worth $3. 5 billion. This market shift has boosted the value of similar companies by $4 billion. Denton's not blind to the risks. The city's been skeptical, remembering the secrecy and energy footprint of the crypto mine. But they're hoping for a different outcome this time. Core Scientific promises a $6. 1 billion investment, creating jobs and tax revenue. AI data centers don't usually pause operations, even when energy's in high demand. This worries some. Can Denton handle more power use, especially during storms? Still, the city insists its environmental goals won't waver. They'll keep offsetting their energy footprint as they grow. It's a big gamble, but Denton's taking it. With AI's rise, they're betting on a new future. Only time will tell if it pays off.