Hyperscale Data, Inc. has established a dedicated capital reserve account targeting approximately USD 120 million to fund the continued development of its Michigan AI data center campus, the Las Vegas-based company announced.

The move comes as the company's California-based neocloud customer has already deposited USD 10.6 million in prepayments under a previously announced Master Services Agreement.

Reserve Account Structure and Funding Sources

The Michigan AI Development Reserve Account, as the company has formally named it, is designed to separately identify capital dedicated exclusively to building out the Michigan Campus.

Hyperscale Data stated that the principal source of funds flowing into the account will come from its At-the-Market equity offering, which the company described as offering a relatively low cost of capital compared to other available financing options.

The company noted that it has already begun allocating capital raised through the ATM offering to the Michigan Reserve Account, with the vast majority of those amounts directed toward supporting the campus buildout.

The company also acknowledged the existence of other potential capital sources but said those alternatives would increase its debt obligations, unlike the ATM offering.

As of Today, Hyperscale Data held approximately USD 94.8 million of cash, restricted cash, Bitcoin, and silver on its balance sheet, a figure the company had previously disclosed.

The establishment of the reserve account does not represent new capital but rather a formal mechanism to separately track funds committed to the Michigan project.

Monthly Transparency Reports to Begin in July

Alongside the reserve account announcement, Hyperscale Data said it intends to begin publishing monthly Michigan AI Infrastructure Progress Reports starting in July 2026.

The company said these reports are expected to include the current balance of the Michigan Reserve Account, capital deployed from the account during each reporting period, and updates on construction progress and other significant development milestones tied to the Michigan Campus.

Milton "Todd" Ault III, Executive Chairman of Hyperscale Data, framed the reporting commitment as a direct response to investor expectations.

"The Michigan Campus represents the most significant growth initiatives in our Company's history, and we believe investors deserve meaningful transparency into how we are funding and executing its development," Ault said in the announcement.

"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," Ault added that the company expects the reserve account balance to grow over time as additional capital is allocated to infrastructure development.

Master Services Agreement Details

The Michigan Campus development is anchored by a Master Services Agreement with a California-based neocloud provider whose name, Hyperscale Data, has not been publicly disclosed.

The MSA carries an initial term of 10 years, with two five-year extension options that may be exercised by the customer. If both extension options are exercised, the agreement would run for a maximum term of 20 years.

Under the initial terms of the MSA, the agreement contemplates approximately 20 megawatts of critical AI compute capacity.

If the contract runs for the full maximum term, Hyperscale Data said it expects the MSA to generate in excess of USD 1.2 billion in total revenue.

The agreement also includes a provision granting the customer the right to claim an additional 32 megawatts of critical AI compute capacity.

If that option is exercised within the first two years of the initial term and the contract continues through both five-year extension periods, the company said total contract revenue would be expected to exceed USD 3.0 billion.

The USD 10.6 million already deposited by the customer represents a combination of deposits and non-recurring charges paid pursuant to the MSA.

Intended Uses of Reserve Capital

Hyperscale Data specified that the Michigan Reserve Account is intended to finance a range of infrastructure expenditures directly tied to the campus.

These include infrastructure improvements, construction activities, electrical distribution systems, cooling infrastructure, networking equipment, and other capital expenditures required to deliver the services outlined in the MSA.

The company said management believes the combination of a dedicated reserve account and the monthly progress reporting framework will give stockholders a transparent mechanism to monitor both the financial commitments being made and the physical execution of the project over time.

Company Background

Hyperscale Data trades on NYSE American under the ticker symbol GPUS. Through its wholly owned subsidiary Sentinum, Inc., the company owns and operates a data center used for digital asset mining as well as colocation and hosting services for AI and other industries.

Its other wholly owned subsidiary, Ault Capital Group, Inc., operates as a diversified holding company focused on acquiring undervalued businesses and disruptive technologies.

The company described its Michigan Campus as what it believes will become one of North America's premier AI infrastructure campuses.