Hyperscale Data executes $1.2 billion multi-year contract with California neocloud provider for 20MW AI compute capacity at Michigan campus
Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence data center company, announced the signing of a Master Services Agreement with a California-based neocloud provider for the deployment of 20 megawatts of critical AI compute capacity at its Michigan data center campus, expected to be operational in the fourth quarter of 2026.
The 10-year MSA, with two five-year extension options exercisable by the customer, is expected to generate in excess of $1.2 billion in revenue over the maximum term. The agreement also grants the customer an option to expand to a total of 52 megawatts of critical AI compute capacity, and includes a right to an additional 32 megawatts of capacity. If all expansion options are exercised within the first two years and continue through the extension periods, total contract revenue would exceed $3.0 billion.
The company is investing an estimated $100 million to $120 million to retrofit approximately 60,000 square feet of the Michigan Campus to support the customer's operations. As AI compute capacity is commissioned and the customer's workloads are deployed, Hyperscale Data expects to progressively reallocate portions of the power currently utilized for Bitcoin mining. The company anticipates continuing Bitcoin mining operations at its Montana facility and may maintain certain mining operations at the Michigan Campus during the transition period.
"We believe our Michigan Campus is positioned to offer a top-tier AI compute environment, and these Services are expected to begin generating material, high-margin revenue upon deployment, which may begin as soon as late September 2026," said William B. Horne, Chief Executive Officer.
"The signing of an MSA represents a significant milestone for the Company," said Milton "Todd" Ault III, Executive Chairman. "We currently operate approximately 28 MW of Bitcoin mining capacity at the Michigan Campus. As the Customer's deployments are brought online, we expect to allocate an increasing portion of the Michigan Campus to AI and high-performance computing workloads. We believe this strategy positions us to maximize the long-term value of the Michigan Campus as we work toward developing more than 300 MW of total power capacity."
Hyperscale Data believes the Michigan Campus may support phased long-term expansion opportunities to ultimately support over 300 megawatts of total power capacity, subject to regulatory approvals, financing, infrastructure availability, engineering studies, utility agreements, and other factors. The company cautions that these expansion concepts remain preliminary and subject to numerous risks and uncertainties, with no assurance that such expansion will be available, developed, financed, approved, economically viable, or otherwise initiated.
Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center where it mines digital assets and offers colocation and hosting services for emerging AI ecosystems and other industries. The company's other wholly owned subsidiary, Ault Capital Group, Inc., is a diversified holding company pursuing growth through acquisitions of undervalued businesses and disruptive technologies. Hyperscale Data currently expects the divestiture of Ault Capital Group to occur in the second quarter of 2027. The company's headquarters are located in Las Vegas, Nevada.