Hyperscale Data, Inc. (NYSE American: GPUS) said Monday it is in advanced negotiations on a master services agreement that would deliver 20 megawatts of AI colocation capacity at its Michigan data center campus, with the contract expected to generate more than $1 billion in revenue over a 20-year term. The deal, the company said, is the first concrete commercial validation of its pivot from a Bitcoin-anchored holding into a pure-play AI infrastructure operator.
20 MW This Year, Expanding To 52 MW And $2.5B By 2028
The negotiations are running through Alliance Cloud Services, LLC (ACS), an indirect wholly-owned subsidiary of Hyperscale Data. If the agreement is executed in the coming weeks, the first 10 megawatts would be operational within 90 days, with another 10 megawatts following 90 days later, putting the full 20 MW online before year-end. ACS intends to deliver an additional 32 MW in 2028, taking total committed capacity for the same prospective customer to 52 MW. Management estimates that expansion would generate roughly $1.5 billion in additional 20-year revenue, lifting the aggregate contract value to about $2.5 billion using only about 17 percent of the Michigan campus's potential 300 MW build-out.
Bitcoin Mining Winds Down To Free Power For Higher-Margin AI Workloads
As AI capacity comes online, Hyperscale Data expects to wind down Bitcoin mining at the Michigan site over several months and redirect the freed power to colocation, which carries materially higher margins. "We are confident in our prospects and believe we will have significant updates for stockholders in the coming days and weeks," said Will Horne, Hyperscale Data's chief executive. "We continue to believe our Michigan Campus is positioned to offer top of the line AI compute environments as we continue to make progress with the installation of key infrastructure to support potential customers." The shift reads as the structural inverse of Applied Digital's 210 MW take-or-pay lease at Delta Forge 2: a smaller player swapping a volatile commodity for a long-duration AI customer contract.
Demand For Scalable AI Compute Drives Sub-Scale Operators
The talks reflect the same supply crunch that has pushed every tier of the data-center industry to chase AI customers. EdgeCore Digital secured $1.5 billion for Northern Virginia hyperscale capacity in May, and Google last week signed a $920 million-a-month compute deal with SpaceX's Colossus 1 facility for Nvidia GPUs. Hyperscale Data's pitch leans on the fact that its Michigan campus already supports existing digital infrastructure, providing the foundation, utility relationships and power easements that hyperscalers spend years securing on greenfield builds.
Caveats On A Preliminary Deal
The company cautioned that no definitive master services agreement has been signed, that the expansion concepts remain preliminary, and that the projected 300 MW total campus capacity is subject to financing, regulatory approvals, utility agreements and engineering feasibility. The single-customer concentration is notable: the projected $2.5 billion 20-year revenue rests entirely on one prospective tenant. GPUS shares jumped on the disclosure, gaining roughly 7 to 8 percent in heavy trading. Hyperscale Data, based in Las Vegas and trading on NYSE American, is expected to divest its Ault Capital Group holding company in the second quarter of 2027 to leave a clean data-center pure-play.
Reporting based on coverage from PR Newswire and StockTitan.