Hyperscale Data Engages Newmark to Arrange Non-Dilutive Long-Term Debt Financing for the Michigan AI Data Center

, /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS ), an artificial intelligence (" AI ") data center company (" Hyperscale Data " or the " Company "), today announced that Alliance Cloud Services, LLC (" ACS "), an indirect wholly owned subsidiary of Hyperscale Data, has engaged Newmark Group, Inc. ("Newmark")") to identify prospective lenders to provide non-dilutive long-term debt financing for the development and expansion of the Company's AI data center campus in Michigan (the " Michigan Campus "). The engagement supports the Company's strategy to fund the Michigan Campus on an institutional basis and reduce reliance on issuances of its common equity.

Newmark is a world leading commercial real estate advisor and service provider with a dedicated data center and digital infrastructure capital markets practice. Newmark's publicly announced data center assignments include arranging a $7.1 billion construction loan in 2025 for an AI data center project in Abilene, Texas, and arranging $975 million in financing in 2026 for a newly constructed data center in Northern Virginia. More generally, Newmark arranged for approximately $59 billion in investments and an additional $73 billion in debt placements during 2025. Hyperscale Data believes that specialized experience in data center financing will be valuable in presenting the Michigan Campus to prospective lenders and evaluating financing alternatives that address the project's requirements.

"Hiring Newmark is an important step toward financing our Michigan Campus on an institutional, long-term basis," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "Successfully securing the debt financing we are pursuing would, once consummated, substantially reduce our need to raise additional equity capital for this project. We believe Newmark's significant experience and expertise can help us pursue a financing structure that reflects the scale of the Michigan Campus and its anticipated revenue profile. Our objective is to fund development responsibly while preserving more of the project's long-term value for our stockholders."

William Horne, Chief Executive Officer of Hyperscale Data, stated, "Long-term debt financing arranged with Newmark's assistance would reduce our reliance on outside equity and provide a stronger financial foundation for building and operating the Michigan Campus over the long term. We are interested in financing that supports the infrastructure needed for customer deployments and gives us a clear framework for funding the project as it develops. Our focus is on securing appropriate terms, managing the cost of capital and limiting dilution while maintaining the financial flexibility needed to execute."

The Company's financing objective is to secure debt capital suited to the Michigan Campus' development requirements and anticipated operating cash flows. The process is intended to evaluate the availability of long-term funding, potential borrowing structures and repayment schedules appropriate for the Michigan Campus' expected progression from construction and commissioning into revenue-generating operations.

Management believes that obtaining suitable institutional debt financing could improve the Company's ability to plan capital expenditures across successive development stages. The Company will evaluate potential financing based on its overall economic terms, including interest expense, repayment obligations, collateral requirements and covenants, and other terms or conditions that lenders may require.

The Michigan Campus is operated by ACS. As previously announced, ACS entered into a master services agreement with a California-based neocloud provider (the " Customer ") for colocation and related data center services supporting an initial 20 megawatts (" MW ") of critical AI compute capacity.

The agreement has an initial term of 10 years, with two five-year extension options exercisable by the Customer. It also provides the customer with a right of first offer for an additional 32 MW, if available, which could bring its total deployment to 52 MW of critical AI compute capacity. Additional capacity and extension periods remain subject to the applicable contractual provisions and development requirements.

As previously disclosed, the Company expects the first 10 MW of critical AI compute capacity at the Michigan Campus to be energized in December 2026, with revenue-generating activities expected to begin in connection with that milestone. Achieving this timetable remains subject to completion of the necessary infrastructure and commissioning activities.

The engagement of Newmark does not constitute a commitment to lend or confirmation that financing has been secured. Any financing will be subject to lender underwriting, due diligence, definitive agreements and applicable closing conditions. The amount, pricing, maturity and other terms of any financing have not been announced. There can be no assurance that financing will be obtained on terms acceptable to the Company, or at all, or that it will eliminate the need for additional equity capital.

For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data's public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

About Hyperscale Data, Inc.