Overview
- Hyperscale Data signed a Master Services Agreement on Wednesday that commits the company to deliver an initial 20 megawatts of AI compute capacity at its Michigan campus with a 10-year term and two five-year extension options.
- The customer has rights to expand to 52 megawatts plus an extra 32 megawatts under a separate option, a path that could raise total contract value from more than $1.2 billion to above $3.0 billion if fully exercised and carried through extensions.
- Alliance Cloud Services, an indirect Hyperscale subsidiary, will retrofit roughly 60,000 square feet for the initial phase at an estimated cost of $100–$120 million and aims to begin operations in Q4 2026 with possible revenue as soon as late September.
- The project will reassign about 28 megawatts currently used for Bitcoin mining at the Michigan site while keeping mining operations at a Montana facility, signaling a strategic pivot toward higher-margin AI colocation services.
- Execution depends on financing, regulatory clearances and utility agreements for which Hyperscale faces headwinds because its market cap is small, it carries meaningful debt, it runs a $300 million at‑the‑market equity program, and analysts warn cash burn could hamper the buildout.