Mining companies turn to AI data centers, CleanSpark bets big with 600MW in Texas

CleanSpark’s move is quite bold. The NASDAQ-listed Bitcoin mining company just announced plans to acquire 447 acres of land in Brazoria County, Texas, to develop a data center park with a total capacity of 600MW. The transaction is expected to be completed this quarter. This is not only a territorial expansion but also reveals the deep transformation that mining companies are undergoing.

From Mining to AI: Strategic Shift

The true intention behind the 600MW park

On the surface, this project appears to be a data center, but its actual focus is clearer: targeting artificial intelligence and high-performance computing (HPC) workloads. CleanSpark also signed a long-term transmission infrastructure expansion agreement, indicating preparations for large-scale AI computing.

According to the latest news, Northland Capital Partners has initiated coverage on CleanSpark, giving an Outperform rating and a target price of $22.50. This bullish stance reflects market recognition of the shift from traditional mining to AI data centers.

Why the shift

Profit margins in Bitcoin mining are being squeezed. The fierce industry competition makes this evident:

Bitdeer’s December output just surpassed that of CleanSpark, and Bitdeer is also developing the next-generation SEAL04 chips, planning mass production in Q1. Under such competition, relying solely on increasing mining capacity is no longer sufficient.

AI data centers, on the other hand, represent a different story. This is an incremental market with rapidly growing demand and larger profit margins. Companies like CleanSpark possess three key assets: abundant electricity resources, operational experience, and an understanding of large-scale computing infrastructure. Transitioning to AI data centers means transforming these advantages into new growth engines.

Signals of Industry Transformation

Diversified bets by mining companies

According to recent reports, institutions like CleanSpark and Cango Inc have been increasing their Bitcoin holdings, with CleanSpark adding 88 coins. This detail is quite interesting: while expanding data centers, they are also buying Bitcoin. It indicates they are not abandoning mining but diversifying their asset allocation.

Bitdeer’s actions also confirm this trend. They deployed NVIDIA GB200 systems in Malaysia for high-performance computing and AI cloud services, planning to go live in January. They are also expanding data center capacity in the US and Norway. Mining companies are transforming into “computing power service providers.”

Conditions to watch

However, CleanSpark’s transaction still needs to meet several conditions to be completed in Q1:

• Approval from utility companies
• Property-related approvals
• Progress on actual transmission infrastructure expansion

Although Texas has abundant power resources, a large project of 600MW still requires a full approval process. Whether this timeline can be met will directly impact CleanSpark’s execution pace.

Summary

CleanSpark’s 600MW data center project is not an isolated business decision but a microcosm of the entire industry’s transformation. Moving from pure Bitcoin mining to AI data centers reflects mining companies’ search for new growth paths.

Market opinions are also clear: Northland’s Outperform rating indicates institutional investors believe this is the right direction. Whether CleanSpark can successfully complete the transaction in Q1 and whether the 600MW park can be commissioned on schedule will be key indicators to observe the effectiveness of the industry’s transformation. The industry is being reshaped, and this time, winners may no longer be determined solely by computing power.