Sphere 3D plans 50MW data center in Hopkinsville, Kentucky

Sphere 3D proposes 50MW Hopkinsville data center

Cryptomining company Sphere 3D is planning a 50MW data center in Hopkinsville, Kentucky. The proposal also includes the possible conversion of an existing 15MW Bitcoin mining facility for artificial intelligence (AI) and high-performance computing (HPC) workloads.

The plans were presented by North Campbell Land Co., a Sphere 3D subsidiary, during a July 27 public hearing about potential data center zoning regulations in the city.

New substation proposed

The proposed 50MW facility would be built at a separate site that has not been disclosed. North Campbell has offered to fund a new 65MW substation for Hopkinsville Electric System (HES), with an estimated cost of $8 million to $10 million.

Approximately 50MW would be allocated to the proposed data center, while the remaining 15MW would be available to other HES customers.

HES general manager Jeff Hurd said the Tennessee Valley Authority could provide the additional capacity without affecting service to the utility’s approximately 13,000 existing customers.

Development would proceed 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 complete development schedule has been confirmed.

Neither project has received approval, and Sphere 3D has not disclosed any prospective AI or HPC customers.

Existing mining operation

The current mining site has operated for approximately three years and contains about 22 modular computing units. It participates in a flexible-load program that allows HES to reduce or stop its electricity consumption during periods of high demand.

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

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

Facilities consuming at least 75MW or occupying 50,000 square feet, or 4,645 square meters, or more would be classified as hyperscale facilities 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.

Sphere 3D expansion and rebrand

North Campbell became a wholly owned subsidiary of Sphere 3D after the company acquired Cathedra Bitcoin in June. The combined business operates approximately 53MW across sites in Iowa, Kentucky, and Tennessee, and has stated that its development pipeline exceeds 100MW.

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

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 a shift toward modular AI and HPC infrastructure at smaller, power-ready sites. Shareholders are scheduled to vote on the change on August 24.