Hyperscale Data Signs AI Data Center Services Deal Worth About $1.2 Bln

(RTTNews) - Hyperscale Data, Inc. (GPUS), an AI data center company anchored by Bitcoin, on Wednesday said its indirect subsidiary, Alliance Cloud Services LLC (ACS), has signed an agreement with a California-based neocloud provider to deliver colocation and data center services at its Michigan campus.

The agreement covers the deployment of 20 megawatts of AI compute capacity, which is expected to be operational in the fourth quarter of 2026.

The contract has an initial term of 10 years with two five-year extension options. If the extensions are exercised, the initial deployment is expected to generate more than $1.2 billion in revenue.

The customer also has the option to expand capacity to 52 megawatts. If the additional capacity is deployed and the agreement remains in place through the extension periods, total contract revenue could exceed $3 billion.

Hyperscale Data said ACS has begun retrofitting about 60,000 square feet of its Michigan campus to support the initial deployment. The work is expected to cost between $100 million and $120 million.

"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," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data.

The company's shares were up more than 20% in pre-market trading after closing at $0.2557 on Tuesday.