Hyperscale Data Secures $1.2B AI Compute Deal for 20 MW at Michigan Campus
GPUS•Hyperscale Data has signed its first Master Services Agreement to deploy 20 megawatts of AI compute capacity at its Michigan data center campus, expected to generate over $1.2 billion in revenue from a 10-year term. An expansion option to 52 MW could raise contract value above $3 billion.
1. Master Services Agreement Details
Hyperscale Data has executed a Master Services Agreement with a California-based neocloud provider to deploy 20 MW of critical AI compute capacity at its Michigan campus. The 10-year term, with two five-year extension options, is expected to generate in excess of $1.2 billion, while an expansion option to 52 MW could boost total contract value above $3 billion.
2. Infrastructure Investment and Timeline
Alliance Cloud Services is procuring key electrical and infrastructure equipment and retrofitting approximately 60,000 square feet for the 20 MW deployment at an estimated cost of $100–120 million. The capacity is slated to be operational in the fourth quarter of 2026, with revenue potentially beginning as early as late September 2026.
3. Strategic Shift from Bitcoin Mining
As AI compute capacity comes online, Hyperscale Data plans to reallocate portions of the Michigan campus’s power currently used for Bitcoin mining. The company will continue mining at its Montana facility and maintain select mining operations in Michigan during the transition.
4. Long-Term Capacity Potential
The Michigan campus has the potential for phased expansion up to 300 MW of total power capacity, subject to regulatory approvals, financing, and infrastructure development. This aligns with the company’s strategy to evolve into a next-generation AI and high-performance computing campus.
