Core Scientific Acquires Polaris DS LLC for $421M to Expand AI Data Center Campus

Why It Matters

The purchase dramatically boosts Core Scientific’s power capacity, positioning it as a leading AI‑infrastructure provider in the Midwest and shortening delivery timelines for high‑performance cloud customers.

Key Takeaways

• Core Scientific acquires Polaris DS for $421 million cash.
• Adds 440 MW grid connection, targeting 1.5 GW campus capacity.
• Existing 70 MW AI facility leased to CoreWeave slated for Q2 2026.
• Plans behind‑the‑meter power and 250 acres for future expansion.
• Second 82.5 MW building under construction, delivery expected Q4 2027.

Pulse Analysis

Core Scientific’s latest move underscores a broader industry shift from cryptocurrency mining toward AI‑driven workloads. While crypto mining once justified massive power draws, the surge in generative AI demand has redefined data‑center economics, prompting operators to repurpose existing infrastructure for higher‑margin services. By leveraging its legacy mining assets, Core Scientific can offer AI customers dedicated, low‑latency connectivity and proximity to Nvidia’s GB300 GPUs, a combination increasingly prized by firms seeking to train large models.

The Muskogee acquisition delivers a strategic 440 MW grid connection and an on‑site substation, effectively laying the groundwork for a 1.5 GW campus—one of the largest AI‑focused power footprints in the United States. The company’s behind‑the‑meter plan, supported by 250 acres of land, aims to reduce reliance on utility‑scale power and improve energy cost predictability, a critical factor for AI workloads that consume megawatts of electricity. The additional 82.5 MW building, already under construction, signals confidence in sustained demand and provides a pipeline for future tenants.

For the regional economy, the expansion promises job creation, tax revenue, and ancillary services, reinforcing Oklahoma’s emerging reputation as a data‑center hub. Competitors will likely watch Core Scientific’s model—combining legacy mining contracts with AI‑centric design—as a template for rapid capacity scaling. As AI adoption accelerates across enterprises, the ability to deliver gigawatt‑scale, power‑efficient facilities will become a decisive competitive advantage, and Core Scientific’s Muskogee campus positions it at the forefront of that race.

Deal Summary

Core Scientific announced it will acquire Polaris DS LLC, a Bitcoin‑mining firm with a 440 MW power contract, for approximately $421 million in cash. The deal includes 40 acres of land and a substation in Muskogee, Oklahoma, to expand Core Scientific’s AI data‑center campus to 1.5 GW of gross power. The transaction is expected to close in Q3 2026, with a possible $40 million earn‑out if additional capacity becomes available.