Hyperscale Data Inc. in Las Vegas, a diversified holding company, has announced its indirect wholly owned subsidiary, Alliance Cloud Services, has entered into an engineering design agreement with SEMCO Energy Inc. in Port Huron.
Alliance Cloud Services is working to boost power to support AI, machine learning, and high-performance computing workloads.
Under the agreement, SEMCO Energy will initiate the design and planning of new natural gas distribution infrastructure to enable approximately 40 megawatts of incremental on-site power generation capacity at ACS’ Michigan data center.
The artificial intelligence data center is located in Dowagiac (southwest of Kalamazoo, close to the Indiana border).
Key terms of the agreement include:
- Scope: SEMCO will conduct all preliminary engineering and design work required for pipeline routing, metering infrastructure, and related equipment to deliver increased natural gas capacity.
- Future Expansion: The parties intend to negotiate a definitive facility construction agreement within the next several months, which would cover construction, installation, and operation of the new infrastructure.
- Project Timeline: Facility construction, once initiated, is expected to be completed within 15 months from execution of the construction agreement.
“This agreement marks a key milestone as we expand the infrastructure that powers our Michigan Site,” says Will Horne, CEO of Hyperscale Data. “With SEMCO’s experience and support, we are laying the foundation for high-efficiency, on-site power generation to meet the growing demands of the artificial intelligence industry.”
SEMCO and ACS state they are committed to working collaboratively to finalize plans and move toward the construction phase later this year, subject to regulatory approvals and the completion of all necessary due diligence.
For more information on Hyperscale Data and its subsidiaries, visit hyperscaledata.com.
