Why CleanSpark, Not Microsoft, Won the Wyoming AI Data Center Bid

CleanSpark (CLSK), a Las Vegas-based Bitcoin miner, is strategically diversifying its operations by venturing into the artificial intelligence sector. The company is initiating the development of AI data centers alongside its established cryptocurrency mining business, a move that could redefine the economics of digital infrastructure.</CleanSpark CEO Matt Schultz recently discussed this evolving strategy, highlighting its potential to become a core component for numerous crypto-mining enterprises.

A specific example illustrating the inherent advantages of Bitcoin miners in the competitive data center market is CleanSpark’s recent achievement of securing a 100-megawatt site in Cheyenne, Wyoming, outpacing even tech titan Microsoft for the pivotal contract. This demonstrates how specialized infrastructure and rapid deployment capabilities can outweigh sheer market capitalization in securing essential resources.

The key differentiator, according to Schultz, lies in “speed to market.” CleanSpark demonstrated the ability to rapidly scale up a 100 MW Bitcoin mining operation in approximately six months, a stark contrast to the three to six years typically required to construct a conventional AI data center. “Cheyenne didn’t choose CleanSpark because we had a stronger balance sheet than Microsoft,” Schultz noted, emphasizing the pivotal role of agility and execution speed.

This strategic shift also addresses increasing power supply competition and aligns with CleanSpark’s origins as an energy company before its transition to Bitcoin mining five years ago. The move represents a strategic evolution toward maximizing asset utilization and long-term profitability within the rapidly evolving technology landscape. The pivot to AI reflects a calculated response to the changing dynamics of the digital economy.

CleanSpark currently operates facilities energizing approximately 1.03 gigawatts and maintains an additional 1.7 gigawatts in its development pipeline. Schultz elaborated that the company’s strategy leverages Bitcoin mining to expedite infrastructure development, described as effectively “monetizing megawatts.” Existing data centers will be re-evaluated and potentially repurposed for high-performance computing and AI, focusing on locations with robust infrastructure such as Atlanta, a burgeoning AI data center hub second only to Northern Virginia on the East Coast.

“Bitcoin miners occupy a unique position due to their ability to build and energize data centers with exceptional speed,” Schultz commented. “Currently, access to power is the primary constraint in this sector.” The emphasis on securing reliable and scalable power infrastructure positions CleanSpark strategically within the ongoing competition for digital resources.

On Tuesday, CleanSpark announced a collaborative alliance with Submer, a firm specializing in data center design and construction, further solidifying the company’s commitment to developing AI-centric campuses across North America. By integrating CleanSpark’s energy and land assets with Submer’s liquid-cooled, high-density infrastructure solutions, the partnership aims to establish a new benchmark in sustainable and efficient AI infrastructure.

In a press release, Schultz declared, “We are positioned to deploy AI capacity at gigawatt scale, more rapidly, cleanly, and efficiently than conventional approaches. This synergy aligns perfectly with our vision to transforming CleanSpark’s infrastructure platform into the foundational base for the next era of intelligent computing.”

The computational intensity of training and running AI models demands substantial power resources. Major players such as Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT) are investing unprecedented capital in constructing new data centers and negotiating deals with utility companies to either construct new or reactivate dormant nuclear reactors. These efforts aim to address the escalating energy demands, however, the timeline for grid integration often presents significant delays, restricting the swift scaling crucial for the burgeoning AI industry. CleanSpark intends to capitalize on these constraints.

Schultz emphasized that “Hyperscalers are allocating 60% of their free cash flow to capital expenditures in an effort to keep pace with AI advancement. Bitcoin miners already possess the critical assets: land, substations, and direct electricity access.” This positions CleanSpark to alleviate bottlenecks in AI infrastructure by providing immediate access to necessary power and resources.

CleanSpark’s shares have surged by over 100% year-to-date, partly propelled by the company’s proactive pivot away from Bitcoin mining, which faces tightening margins due to the halving event in April. The halving cut block rewards in half, thereby diminishing profitability. The transition towards AI data centers serves to counterbalance these shifts, enhancing long-term profitability and diversifying revenue streams.

Data from the U.S. government shows that total annual electricity consumption reached a record high in 2024. As fear of a potential bubble in the AI sector grows, data centers are expected to exacerbate existing energy consumption trends. This further emphasizes the strategic importance of energy-efficient and rapidly deployable solutions like the ones offered by CleanSpark.

Schultz emphasized that “The analysis made it evident that shareholders would gain the most from a dual-track business plan. This strategy involves maximizing existing Bitcoin mining operations, while also leveraging our access to power and land to provide AI data center services. This provides profitable opportunity that can add shareholder value”

CleanSpark brought around $198.6 million in revenue, a 91% hike year-over-year in the third quarter of fiscal 2025 . The company currently holds 12,703 bitcoin in its corporate treasury.

Schultz clarified that the company’s AI expansions won’t replace crypto. “Its [bitcoin mining] a great part of our business,” he said

The flexible power model also gives CleanSpark an additional advantage. Mining operations can push power back to the system if there is grid stress. Something that AI centers are unable to do easily.

Shultz stated “Blending ai data centers with an additional bitcoin center will give you the ‘interrupt’ which adds flexibility to utility loads that are desperately needed.”

CleanSpark can curtail loards and push power back into the grid quickly by receiving grid demands and utility signals when there’s an increased demmand to the grid. Schultz says that many AI agreements are on the “opposite side,” but require uptime of 99.9999%.

This flexibility of clearnspark became valuable when local substation damaged in Georgia due to hurricane Helene. CleanSpark then redirected energy to the grid, which powered down its rigs. Schultz says, “The lights came back on at the hospital within an hour while they fully restored the community infastructure.