Starwood Digital Ventures (SDV)

Starwood Digital Ventures (SDV), the data center development arm of Starwood Capital Group, has partnered with Marathon Digital Holdings (MARA) to convert MARA's existing cryptocurrency mining sites in Texas and North Dakota into enterprise, hyperscale, and AI data center facilities. The joint venture targets 1,000 MW of near-term IT capacity with a long-term pathway to 2,500+ MW, leveraging MARA's accumulated power-rich assets including stranded and behind-the-meter energy infrastructure and a recent onshore wind farm acquisition. SDV will manage design, development, construction, and operations while MARA contributes fully powered sites with established grid connectivity, positioning the facilities to serve both Bitcoin mining and AI compute workloads with operational flexibility. This conversion strategy is notable because it repurposes existing energy infrastructure and mining facilities into dual-use data center campuses rather than building from greenfield, reducing both capital expenditure and timeline to revenue while Starwood's parallel 1,200 MW Delaware campus development demonstrates institutional confidence in this asset class. Vendors and contractors pursuing this opportunity must demonstrate expertise in rapid conversion of legacy mining infrastructure to hyperscale data center standards, understand dual-workload operational requirements for Bitcoin and AI compute, and possess the capability to deploy 1 GW of capacity in the near term with clear pathways to 2.5 GW+ expansion.