Hyperscale Data, Inc. (NYSE American: GPUS) announced on October 28, 2026, that Alliance Cloud Services, LLC, an indirect wholly owned subsidiary, has engaged Newmark Group, Inc. to identify prospective lenders for non-dilutive long-term debt financing covering the development and expansion of the company's AI data center campus in Michigan.

Las Vegas-Based AI Operator Turns to Institutional Lenders in Place of Common Stock Sales

The company said the engagement supports its strategy to fund the Michigan Campus on an institutional basis and to reduce reliance on issuances of its common equity. Milton "Todd" Ault III, the company's Executive Chairman, described the hiring of Newmark as an important step toward financing the campus on a long-term, institutional footing. He said that successfully securing the debt being pursued would, once consummated, substantially reduce the need to raise additional equity capital for the 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," Ault said.

His stated objective, he added, is to fund development responsibly while preserving more of the project's long-term value for stockholders.

Chief Executive Officer William Horne offered a similar assessment, saying that long-term debt arranged with Newmark's assistance would cut 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," Horne stated. He said the company's focus is on securing appropriate terms, managing the cost of capital, and limiting dilution while keeping the financial flexibility needed to execute.

What the Company Is Looking For in a Lending Package

Hyperscale Data's stated financing objective is debt capital suited to the Michigan Campus' development requirements and its anticipated operating cash flows.

The process is designed to test the availability of long-term funding, potential borrowing structures, and repayment schedules appropriate for a campus expected to move from construction and commissioning into revenue-generating operations.

Management believes suitable institutional debt could improve the company's ability to plan capital expenditures across successive development stages. In evaluating prospective arrangements, the company will weigh overall economic terms, including interest expense, repayment obligations, collateral requirements, and covenants, along with any other terms or conditions lenders may require.

The Assignment Builds on Newmark's Digital Infrastructure Practice

Newmark, a commercial real estate advisor and service provider, maintains a dedicated data center and digital infrastructure capital markets practice.

Among its publicly announced data center assignments, the firm arranged a USD 7.1 billion construction loan in 2025 for an AI data center project in Abilene, Texas, and arranged USD 975 million in financing in 2026 for a newly constructed data center in Northern Virginia. More broadly, Newmark arranged approximately USD 59 billion in investments and an additional USD 73 billion in debt placements during 2025.

Hyperscale Data said it believes Newmark's specialized experience in data center financing will be valuable in presenting the Michigan Campus to prospective lenders and in evaluating financing alternatives that address the project's requirements.

Revenue Backdrop: A 10-Year Deal with Room to Grow to 52 MW

The Michigan Campus is operated by Alliance Cloud Services. As previously announced, ACS entered into a master services agreement with a California-based neocloud provider covering colocation and related data center services supporting an initial 20 megawatts of critical AI compute capacity.

The agreement carries an initial term of 10 years with two five-year extension options exercisable by the customer, and grants the customer a right of first offer for an additional 32 MW, if available, a deployment that could reach 52 MW of critical AI compute capacity in total.

Additional capacity and extension periods remain subject to applicable contractual provisions and development requirements.

As previously disclosed, the company expects the first 10 MW of critical AI compute capacity at the campus to be energized in December 2026, with revenue-generating activities expected to begin in connection with that milestone.

That timetable remains subject to completion of necessary infrastructure and commissioning activities.

Company Stresses Financing Is Not Yet in Hand

Hyperscale Data emphasized that engaging 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. The company cautioned that there can be no assurance financing will be obtained on terms acceptable to it, or at all, or that it would eliminate the need for additional equity capital.

Hyperscale Data, through its wholly owned subsidiary Sentinum, Inc., owns and operates a data center offering colocation and hosting services for emerging AI ecosystems and other industries.

Another wholly owned subsidiary, Ault Capital Group, Inc., is a hybrid private equity firm and operating company.