Hyperscale Data, Inc. has executed its first Master Services Agreement with a California-based neocloud provider to deploy 20 megawatts of critical AI compute capacity at its Michigan data center campus, in a deal the company says is expected to generate more than USD 1.2 billion in revenue over the life of the contract.

Deal Structure and Financial Terms

The agreement, announced June 24, 2026, was signed between Alliance Cloud Services, LLC, an indirect wholly owned subsidiary of Hyperscale Data, and an unnamed California-based neocloud customer.

The customer's offerings include cloud and managed services focused on tailored compute resources and high-speed storage solutions.

The Master Services Agreement covers an initial deployment of 20 megawatts of critical AI compute capacity, with that capacity expected to be operational during the fourth quarter of 2026.

The agreement carries an initial term of 10 years, with two five-year extension options that may be exercised by the customer, creating a maximum contractual term of 20 years.

If the customer exercises both extension options over the full maximum term, the deal is expected to generate revenue in excess of USD 1.2 billion.

Beyond the initial 20 megawatts, the agreement grants the customer an option to expand capacity to a total of 52 megawatts.

The contract also provides the customer with a right to 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 customer continues through both five-year extension options, the total contract revenue would be expected to exceed USD 3.0 billion. That level of deployment would represent approximately 17 percent of the Michigan campus's potential total power capacity of 300 megawatts.

Infrastructure Investment and Build-Out Timeline

To support the initial deployment, Alliance Cloud Services has begun retrofitting approximately 60,000 square feet of its Michigan campus.

The company estimates the cost of that work at between USD 100 million and USD 120 million for the initial 20-megawatt phase.

ACS is also actively working on the procurement of key electrical and infrastructure equipment to support what the company described as rapid deployment.

William B. Horne, the company's chief executive officer, said in the announcement that services are expected to begin generating material, high-margin revenue upon deployment, which may begin as soon as late September 2026.

Horne described the Michigan campus as positioned to offer a top-tier AI compute environment and characterized the agreement as a continuation of the facility's evolution away from Bitcoin mining toward high-performance computing.

Transition Away from Bitcoin Mining

Hyperscale Data currently operates approximately 28 megawatts of Bitcoin mining capacity at the Michigan campus.

As the Neocloud customer's deployments come online, the company expects to progressively reallocate portions of the power at the Michigan campus that are currently used for Bitcoin mining.

The company stated it currently anticipates continuing to operate Bitcoin mining capacity at its Montana facility and may maintain certain mining operations at the Michigan campus during the transition period.

Executive Chairman Milton "Todd" Ault III said the strategy is designed to maximize long-term value at the Michigan campus as the company works toward developing more than 300 megawatts of total power capacity at the site.

Long-Term Campus Expansion Plans

Hyperscale Data has outlined phased long-term expansion opportunities for the Michigan campus, though the company has attached significant caveats to those projections.

The company stated it believes the campus may ultimately have the potential to support over 300 megawatts of total power capacity, but noted that such expansion remains preliminary and subject to regulatory approvals, financing, infrastructure availability, engineering studies, utility agreements, and other factors.

The company explicitly cautioned that there is no assurance that expansion capacity will ultimately be available, developed, financed, approved, economically viable, or otherwise initiated or continued.

Company Background

Hyperscale Data, Inc. trades on NYSE American under the ticker GPUS.

Through its wholly owned subsidiary Sentinum, Inc., the company owns and operates a data center at which it mines digital assets and offers colocation and hosting services for AI ecosystems and other industries.

A second wholly owned subsidiary, Ault Capital Group, Inc., operates as a diversified holding company pursuing acquisitions of undervalued businesses and disruptive technologies.

The company currently expects to divest Ault Capital Group in the second quarter of 2027. Upon completion of that divestiture, Hyperscale Data said it would operate as an owner and operator of data centers supporting high-performance computing services and as a holder of digital assets.

Until that divestiture occurs, Ault Capital Group will continue providing mission-critical products across industries, including an AI software platform, equipment rental services, and defense-related operations.