Why MARA Is Teaming Up With Starwood to Build Gigawatt-Scale Data Centers

The partnership signals a broader shift as energy-rich crypto infrastructure pivots toward hyperscale and AI computing demand

Nasdaq-listed digital energy and infrastructure company MARA Holdings has entered into a strategic partnership with global investment firm Starwood Capital Group to convert and expand select MARA sites into large-scale data centers designed for enterprise, hyperscale and artificial intelligence (AI) workloads.

The partnership will be carried out through Starwood Digital Ventures (SDV), the firm’s in-house data center platform. Together, the companies intend to co-develop, fund and manage projects across MARA’s power-secured sites. The initial target is about 1 gigawatt of IT capacity, with potential expansion beyond 2.5 gigawatts over time.

The announcement comes amid surging global demand for AI-capable infrastructure, as companies race to secure power, land and compute capacity to support generative AI models, cloud expansion and high-performance computing.

Why This Partnership Matters

The deal reflects a larger trend reshaping the digital infrastructure sector: the growing convergence of energy and compute.

MARA, originally known for large-scale Bitcoin mining operations, controls power-rich facilities that were built to support energy-intensive workloads. Instead of relying solely on crypto mining, the company is now repositioning these assets to serve broader computing needs.

Under the agreement:

• MARA will contribute energy-advanced sites with strong power access and interconnection positions.
• Starwood Digital Ventures will lead development, design, tenant sourcing and operations.
• Starwood Capital will provide investment expertise to structure and finance the projects.

This model aims to accelerate deployment compared to traditional data center development, which often faces lengthy delays due to power constraints and permitting challenges.

A Shift From Crypto to Compute Flexibility

One of the most notable aspects of the partnership is the design flexibility. According to the companies, the campuses will be capable of running both Bitcoin mining and AI workloads, allowing MARA to shift capacity depending on market conditions.

Fred Thiel, Chairman and CEO of MARA, emphasized the importance of energy certainty:

“MARA’s power rich sites give customers what they need most: predictable access to energy at scale. Our partnership with Starwood will allow us to turn that power certainty into capacity certainty.”

This flexibility could allow MARA to respond to fluctuations in crypto prices, AI demand or enterprise computing needs — potentially stabilizing revenue streams in a volatile market.

Starwood’s Expanding Digital Infrastructure Strategy

For Starwood Capital, which manages over $125 billion in assets, the partnership deepens its presence in digital infrastructure — one of the fastest-growing real asset classes.

Barry Sternlicht, Chairman and CEO of Starwood Capital, said:

“Data centers are the infrastructure responsible for driving the modern economy, and our partnership with MARA expands our opportunities to continue investing in this sector.”

Through Starwood Digital Ventures, the firm has assembled one of the largest privately held data center development portfolios globally. SDV’s team has experience spanning more than 10 gigawatts of development across multiple markets, including Europe, Asia and Australia.

By partnering with MARA, Starwood gains access to ready-to-scale, power-secured sites — a major competitive advantage at a time when grid access is a primary bottleneck for AI data center expansion.

The AI boom has shifted the competitive landscape of data center development. Access to electricity — not land or capital — is increasingly the limiting factor.

MARA’s existing sites reportedly offer:

• Access to low-cost energy
• Strong interconnection capacity
• Pathways for scalable expansion

In many markets, hyperscale developers face multi-year delays in securing power agreements. By leveraging energy-intensive crypto infrastructure, MARA and Starwood may be able to bring AI-ready capacity online faster than traditional developers.

However, execution risks remain. Converting Bitcoin mining facilities into enterprise-grade or hyperscale AI data centers requires significant upgrades in cooling, networking and reliability standards. The success of the partnership will depend on how efficiently these transitions are managed.

Financial and Strategic Context

The partnership was announced alongside MARA’s fourth-quarter and full-year 2025 financial results, signaling that the move forms part of a broader strategic pivot.

For MARA, the joint venture structure offers a more capital-efficient path to expansion. Instead of funding large-scale data center development solely from its balance sheet, the company can leverage Starwood’s capital and operational expertise.

For Starwood, the deal represents exposure to AI infrastructure growth without starting from greenfield sites — often the most time-consuming and capital-intensive approach.

The MARA–Starwood partnership highlights how digital infrastructure is evolving beyond traditional models. As AI workloads grow exponentially, developers are seeking innovative ways to secure power and accelerate deployment.

By combining energy-backed crypto infrastructure with institutional real estate capital and data center expertise, the two companies aim to position themselves at the intersection of Bitcoin, AI and hyperscale computing.

Whether this hybrid model can deliver gigawatt-scale capacity on schedule remains to be seen. But in an era where electricity and compute are becoming strategic assets, partnerships like this suggest that the future of digital infrastructure may be shaped as much by energy strategy as by technology itself.

Quick Takeaways

• MARA has partnered with Starwood Capital to convert energy-rich crypto sites into AI- and hyperscale-ready data centers.
  
• The joint effort targets 1 GW of near-term IT capacity, with plans to scale beyond 2.5 GW.
  
• The campuses will be designed to run both Bitcoin mining and AI workloads, allowing flexible use based on market demand.
  
• Starwood brings institutional capital and data center expertise, while MARA contributes power-secured infrastructure — a key advantage amid energy constraints.
  
• The move reflects a broader industry shift where access to electricity is becoming the main bottleneck in AI data center expansion.