What is MARA Holdings Inc. partnering with Starwood Capital Group to do?

MARA Holdings Inc. is partnering with Starwood Capital Group to develop its existing Bitcoin mining sites into infrastructure that can support artificial intelligence applications and other cloud services.

What capacity is the MARA Holdings and Starwood Capital joint venture expected to deliver?

The joint venture is expected to deliver about one-gigawatt immediate capacity with a possibility of building up to 2.5 gigawatt.

Why are Bitcoin miners like MARA Holdings pivoting to AI data centers?

Bitcoin miners are pivoting to AI data centers because they often have access to cheap and readily available energy sources and sites that can be converted, shortening lead times compared to building from scratch.

Home / Business and Economy / Bitcoin Miners Pivot to AI Data Centers

Bitcoin Miners Pivot to AI Data Centers

27 Feb

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Summary

MARA Holdings partners with Starwood Capital for AI infrastructure.
Joint venture to develop Bitcoin mining sites into AI data centers.
Initial capacity of one gigawatt expected, expandable to 2.5 GW.

MARA Holdings Inc. has announced a significant partnership with Starwood Capital Group to repurpose its Bitcoin mining facilities for artificial intelligence (AI) and cloud services. This strategic alliance will see Starwood Digital Ventures, Starwood Capital's data center development arm, spearhead the design, tenant acquisition, construction, and operational aspects of these new ventures. MARA will contribute its existing sites, with the joint project expected to yield an immediate one-gigawatt capacity and potentially scale up to 2.5 gigawatts.

The collaboration emphasizes developing sites with access to cost-efficient energy and scalable infrastructure, prioritizing robust interconnection capabilities. Barry Sternlicht, of Starwood Capital, expressed enthusiasm for the venture, highlighting their firm's strong market presence and ability to execute MARA's ambitious plans. MARA CEO Fred Thiel indicated that the miner could retain up to 50% ownership in the joint venture, sharing development costs and profits.