Hyperscale Data, Inc., the NYSE American-listed artificial intelligence data center company, has announced it is in advanced negotiations with a prospective customer toward executing a master services agreement that would provide 20 megawatts of critical AI compute capacity at its Michigan data center campus, with the deal expected to generate in excess of USD 1 billion in revenue over a 20-year term.

The Las Vegas-based company made the announcement, disclosing that management believes its indirect wholly owned subsidiary, Alliance Cloud Services, LLC, will enter into the agreement covering colocation and related data center services for AI compute deployments within the coming weeks.

Deal Structure and Timeline

Under the terms being negotiated, the first 10 megawatts of capacity would be made operational within 90 days of the agreement being executed, followed by an additional 10 megawatts in the 90 days thereafter.

The agreement structure under discussion carries a term that, including renewal options, could extend up to 20 years. Alliance Cloud Services expects to deliver the initial 20 megawatts of critical power capacity to the one potential customer before the end of this year.

The company further disclosed that Alliance Cloud Services intends to deliver an additional approximately 32 megawatts of critical power capacity during 2028 and anticipates that this additional power will also be taken by the same potential customer.

If the full 52 megawatts of combined capacity is delivered and contracted, the company projects the aggregate revenue over a 20-year term would reach approximately USD 2.5 billion.

The initial 20-megawatt tranche is projected to generate in excess of USD 1 billion over that period, while the additional 32-megawatt expansion expected in 2028 is projected to contribute an additional approximately USD 1.5 billion.

Recently, Hyperscale Data secured USD 15 million advance to fund michigan data center development

Bitcoin Mining to Wind Down at Michigan Campus

As AI compute services become available at the Michigan Campus, Hyperscale Data stated that it will likely cease all Bitcoin mining operations at the site over a period of several months.

The company said this transition is intended to allow it to focus its available power capacity on the higher-margin colocation and AI compute services being negotiated.

The Michigan Campus currently supports existing digital infrastructure operations, which management described as providing a foundation for the continued development of additional AI compute capacity.

Hyperscale Data operates Bitcoin mining through its wholly owned subsidiary Sentinum, Inc., which also offers colocation and hosting services for AI ecosystems and other industries.

Michigan Campus Positioned for Larger Expansion

Beyond the immediate 20-megawatt deal under negotiation, Hyperscale Data outlined what it characterized as significant longer-term expansion potential at the Michigan site.

Management stated it believes the Michigan Campus has the potential to support more than 300 megawatts of total power capacity, subject to regulatory approvals, financing, infrastructure availability, engineering studies, utility agreements, and other factors.

If the campus were ultimately expanded to 300 megawatts or more, the 20 megawatts currently under discussion would represent less than 7 percent of that total potential capacity.

The full 52-megawatt deployment, should the potential customer elect to expand, would represent no more than 17 percent of the campus's potential total power capacity.

The company was careful to note that these expansion concepts remain preliminary and subject to numerous risks and uncertainties, stating there can be no assurance that any expansion capacity will ultimately be available, developed, financed, approved, economically viable, or otherwise initiated or continued.

No Definitive Agreement Yet Reached

Hyperscale Data was explicit in cautioning that while negotiations are ongoing, no definitive agreements have been finalized.

The company stated that management believes the level of customer engagement validates both the strategic value of the Michigan Campus and the growing demand for scalable AI infrastructure in the United States, but stopped short of confirming the deal is complete.

Chief Executive Officer Will Horne commented on the company's outlook, saying the company is confident in its prospects and expects to have significant updates for stockholders in the coming days and weeks.

Horne also noted the company continues to believe the Michigan Campus is positioned to offer top-of-the-line AI compute environments as it continues to make progress with the installation of key infrastructure to support potential customers.

Company Background and Corporate Structure

Hyperscale Data trades on NYSE American under the ticker symbol GPUS and describes itself as an artificial intelligence data center company anchored by Bitcoin.

In addition to Sentinum, Inc., the company operates through another wholly owned subsidiary, Ault Capital Group, Inc., which functions as a diversified holding company pursuing growth through acquiring undervalued businesses and disruptive technologies.

Hyperscale Data has indicated it currently expects to complete a divestiture of Ault Capital Group in the second quarter of the relevant fiscal period, though the announcement did not provide further details on the timeline for that transaction.

The company stated it sees increasingly strong interest in its Michigan Campus from prospective customers seeking scalable AI infrastructure and high-density GPU-based compute environments and IT infrastructure, framing the current negotiations as part of a broader trend in demand for domestic AI compute capacity.