Las Vegas-based Hyperscale Data Inc., which operates a large data center campus in Dowagiac in southwest Michigan, says it’s negotiating with a customer with the potential of bringing $1 billion worth of business into the state.
The company stated that negotiations with a prospective customer have advanced to a stage where management believes that Alliance Cloud Services, an indirect wholly owned subsidiary of Hyperscale Data, will enter into a master services agreement to provide colocation and related data center services for AI compute deployments in the coming weeks.
As these services become available, the company likely will cease all Bitcoin mining operations at the Michigan campus over several months so that it can focus its available power capacity on these higher-margin services.
If the agreement under negotiation is executed, it is expected that the first 10 megawatts would be operational within 90 days followed by an additional 10 MWs 90 days thereafter.
ACS says it expects to provide approximately 20 MWs of critical power capacity this year for one potential customer. Agreements of this nature, many of which have a term, including renewal options, of up to 20 years, will typically generate in excess of $1 billion in revenue over a 20-year period.
Additionally, ACS says it intends to deliver an additional approximately 32 MWs of critical power capacity during 2028, and anticipates that such additional power will also be taken by the potential customer. Over a 20-year term, the increased capacity is expected to generate an additional approximately $1.5 billion in total revenue. Accordingly, 52 MWs of total critical power capacity could generate an aggregate of approximately $2.5 billion in total revenue over a 20-year term.
Hyperscale Data says it believes the Michigan campus may support “significant” phased expansion opportunities over time, subject to regulatory approvals, financing, infrastructure availability, engineering studies, utility agreements, and other factors. Management believes the Michigan campus has the potential to support more than 300 MWs of total power capacity.
If the company proves able to increase the total power capacity at the Michigan campus to 300 MWs or more, the approximately 20 MWs of power deployment currently under discussion would utilize less than 7 percent of that total potential capacity. In addition, if the potential customer elects to expand its power consumption to approximately 52 MWs, that would represent no more than 17 percent of the Michigan campus’ potential total power capacity, leaving the majority of such power capacity available for future growth opportunities.
“We are confident in our prospects and believe we will have significant updates for stockholders in the coming days and weeks,” says Will Horne, CEO of Hyperscale Data. “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 company further noted that while negotiations remain ongoing and no definitive agreements have been finalized, 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.
For more information on Hyperscale Data and its subsidiaries, visit hyperscaledata.com or sec.gov.
