Hyperscale Data established $120 million reserve account for Michigan AI data center campus construction and development.
Hyperscale Data announced the establishment of a Michigan AI development reserve account, a dedicated capital reserve targeting approximately $120 million to support continued development of the company's Michigan AI data center campus.
In conjunction with this initiative, the company will begin publishing monthly Michigan AI infrastructure progress reports to provide investors with visibility into the campus's development. The first report is expected in July 2026. These monthly updates will include the balance of the Michigan reserve account, capital deployed during the period, construction progress, and significant development milestones.
The dedicated reserve account is designated to finance infrastructure improvements, construction, electrical distribution systems, cooling infrastructure, networking equipment, and other capital expenditures directly tied to the Michigan campus. It will also support upgrades required under Hyperscale Data's master services agreement with a California-based neocloud provider. That customer has already provided deposits and non-recurring charges totaling approximately $10.6 million.
Hyperscale Data is allocating capital from its at-the-market offering to the Michigan reserve account, with the vast majority earmarked to support the campus buildout. As of June 24, 2026, the company held approximately $94.8 million in cash, restricted cash, Bitcoin, and silver on its balance sheet. The principal source of proceeds deposited into the Michigan reserve account is expected to come from the at-the-market offering. The company has identified other potential capital sources but noted these do not provide capital at the same relatively low cost and could increase debt obligations.
The master services agreement carries an initial 10-year term with two five-year extension options exercisable by the customer. It initially covers approximately 20 megawatts of critical AI compute capacity, expected to generate more than $1.2 billion in revenue if the maximum term is exercised. The customer also has the right to an additional 32 megawatts of critical AI compute capacity. If exercised within the first two years of the initial term and continued through the two five-year extensions, total contract revenue would be expected to exceed $3 billion.
Hyperscale Data is an AI data center company anchored by Bitcoin. Through its wholly owned subsidiary Sentinum, the company owns and operates a data center providing digital asset mining and colocation and hosting services for AI ecosystems and other industries. Another wholly owned subsidiary, Ault Capital Group, is a diversified holding company focused on acquiring undervalued businesses and disruptive technologies. The company expects to divest Ault Capital Group in the second quarter of 2027, after which Hyperscale Data will focus on owning and operating data centers supporting high-performance computing services and holding digital assets.
"The Michigan Campus represents the most significant growth initiative in our Company's history, and we believe investors deserve meaningful transparency into how we are funding and executing its development," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "By establishing the Michigan Reserve Account and providing monthly infrastructure progress reports, we are creating a consistent and straightforward way for stockholders to monitor both the capital being committed to the Michigan Campus and the progress we are making each month. We expect the Michigan Reserve Account to continue growing over time as we allocate additional capital to support infrastructure development. Our objective is to provide investors with regular, measurable updates as we continue building what we believe will become one of North America's premier AI infrastructure campuses."