Cryptomining firm Sphere 3D is planning a 50MW data center in Hopkinsville, Kentucky, alongside the potential conversion of an existing 15MW Bitcoin mining facility to AI and high-performance computing (HPC) workloads.

The proposals were presented by the company’s North Campbell Land Co. subsidiary during a July 27 public hearing on potential data center zoning regulations in the city.

The proposed 50MW facility would be developed at a separate, currently undisclosed site. North Campbell has offered to fund a new 65MW substation for Hopkinsville Electric System (HES), estimated to cost $8-10 million.

Around 50MW would be expected to be allocated to the data center, with the remaining 15MW made available to other HES customers.

HES general manager Jeff Hurd told city council members this month that the Tennessee Valley Authority could provide the additional capacity without affecting service to the utility’s approximately 13,000 existing customers.

The development would be completed in phases, beginning with the conversion of Sphere 3D’s existing mining operation at HES’s Holland Substation. Hurd said the new substation could be ready within six to 12 months, although no overall development schedule has been confirmed.

Neither project has received approval, and no prospective AI or HPC customers have been disclosed.

The existing mining site has operated for around three years and comprises approximately 22 modular computing units. It participates in a flexible-load program, allowing HES to reduce or halt its electricity consumption during periods of high demand.

Hopkinsville does not currently classify data centers as a separate land use, but officials are preparing the city’s first specific zoning regulations for the sector.

A July working draft would classify facilities using less than 75MW and occupying less than 50,000 sq ft as large-scale data centers, subject to a 1,000-foot setback from neighboring residential, public, and quasi-public properties.

Facilities using at least 75MW or occupying 50,000 sq ft (4,645 sqm) or more would be classified as hyperscale and prohibited. The physical footprint of Sphere 3D’s proposed facility has not been disclosed.

Community and Development Services is expected to hold a second public hearing before making a recommendation to Hopkinsville City Council.

North Campbell became a wholly owned subsidiary of Sphere 3D following the company’s acquisition of Cathedra Bitcoin in June. The combined business operates approximately 53MW across sites in Iowa, Kentucky, and Tennessee, with a claimed development pipeline exceeding 100MW.

Sphere 3D confirmed the Hopkinsville plans in its second-quarter results. It reported revenue of $2.5m, a net loss of $13.8m, and cash and cash equivalents of $2.8m as of June 30.

The company is also seeking shareholder approval to change its name to DarkHorse Technologies Inc. and replace its Nasdaq ticker, ANY, with the reserved symbol DRK.

Sphere 3D said the proposed rebrand reflects its shift towards modular AI and HPC infrastructure at smaller, power-ready sites. Shareholders are scheduled to vote on the change on August 24.