Hyperscale Data to Provide 20 MW Services at Michigan Data Center

Hyperscale Data announced that it sees increasingly strong interest in its Michigan data center campus from prospective customers seeking scalable AI infrastructure and high-density GPU-based compute environments and IT infrastructure. The company stated that negotiations with a prospective customer have advanced to a stage where management believes that Alliance Cloud Services, an indirect wholly owned subsidiary of Hyperscale Data, will enter into a master services agreement to provide colocation and related data center services for AI compute deployments in the coming weeks. As these services become available, the company will likely cease all bitcoin mining operations at the Michigan Campus over several months so that it can focus its available power capacity on these higher margin services. If the agreement under negotiation is executed, it is expected that the first 10 megawatts would be operational within 90 days followed by an additional 10 MWs 90 days thereafter. ACS expects to provide approximately 20 MWs of critical power capacity this year for one potential customer. Agreements of this nature, many of which have a term, including renewal options, of up to 20 years, will typically generate in excess of $1B in revenue over a 20-year period. Additionally, ACS intends to deliver an additional approximately 32 MWs of critical power capacity during 2028, and anticipates that such additional power will also be taken by the potential customer. Over a 20-year term, the increased capacity is expected to generate an additional approximately $1.5 billion in total revenue. Accordingly, 52 MWs of total critical power capacity could generate an aggregate of approximately $2.5B in total revenue over a 20-year term. Management believes the Michigan Campus has the potential to support more than 300 MWs of total power capacity.