The City of Denton Announces an Expanded Commercial Agreement with Core Scientific

DENTON, TX, Nov. 20, 2024: During their meeting on Nov. 19, the Denton City Council approved amendments to the Power Purchase Agreements and land leases with Core Scientific (NASDAQ: CORZ). With this approval, Core Scientific's hosted tenant is expected to add high-performance computing infrastructure for artificial intelligence applications and an office complex to the site, resulting in a $6.1 billion real property investment. This investment will result in $194 million in property tax revenue to the City of Denton over the first 10 years once the expansion achieves final build-out, which is expected to be completed in 2027.

The deal between Core Scientific and the City of Denton includes the lease of 78.85 acres of City-owned land, located near the Denton Energy Center, to Core Scientific for private use, and provisions that Core Scientific is responsible for costs associated with the electrical interconnection infrastructure. While Core Scientific did apply to the State of Texas for incentives and abatements, no tax incentives were requested from the City of Denton for the project.

The expansion of the Core Scientific site is expected to have a significant positive economic development impact to the City of Denton, including an estimated 300 full-time, on-site positions, and over 200 independent jobs from entities that would support the operation. In total, the project is expected to have a positive net impact of over $430 million to Denton's taxing bodies over 10 years.

"Denton's trajectory is highly promising, and our expanding infrastructure makes the city an ideal hub for corporate investments" says City Manager Sara Hensley. "As we grow, Denton is committed to responsible development that enhances our livability and provides opportunity for our educational institutions to serve as a workforce pipeline. This site will serve as a model for high-performing computing innovation."

Once final build-out is completed, the required power will increase the demand on Denton Municipal Electric's (DME) system, and will be included in DME's 100% renewable energy portfolio.

Core Scientific is also responsible for costs associated with improved interconnection infrastructure that is expected to include the construction of two new on-site substations. Currently, DME is assessing the transmission system impacts and has identified several options to remedy any limitations. Any solution will require the approval of the Regional Transmission Group and ERCOT. All physical improvements to the transmission system should be completed by 2029.

Contact: Stuart Birdseye, External Affairs Administrator/PIO, Denton Municipal Electric [email protected], (940) 349-8009

(About Denton Municipal Electric) Denton Municipal Electric is Denton's municipally-owned electric provider since 1905 and is proud to supply the Denton community with safe, reliable, and 100% renewable energy.

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