Hyperscale Data, Inc., an AI-focused data center operator with roots in Bitcoin infrastructure, has announced a new Master Services Agreement (MSA) through its indirect wholly owned subsidiary, Alliance Cloud Services, LLC (ACS). Under the agreement, ACS will deliver colocation and data center support services to a California-based neocloud company at the firm's Michigan data center campus.

The customer specializes in cloud and managed services, offering customized high-performance computing resources and scalable storage solutions in partnership with leading technology providers.

The agreement calls for the deployment of 20 megawatts (MW) of AI computing capacity, which is expected to become operational during the fourth quarter of 2026. The customer also has the option to expand its footprint to as much as 52 MW of AI compute capacity. The contract carries an initial term of 10 years, with two additional five-year renewal options available. If the customer exercises the full 20-year term, the agreement is projected to generate more than $1.2 billion in revenue.

In addition, the MSA grants the customer the right to secure an extra 32 MW of AI computing capacity. Should this expansion be activated within the first two years and remain in effect through both renewal periods, total contract revenue could exceed $3 billion.

To support the initial deployment, ACS has begun acquiring critical electrical and infrastructure components and is retrofitting approximately 60,000 square feet of space at the Michigan campus. The estimated investment for preparing the site for the first 20 MW phase ranges between $100 million and $120 million.

As AI infrastructure is brought online and customer workloads increase, Hyperscale Data plans to gradually redirect power resources currently dedicated to Bitcoin mining at the Michigan campus. The company expects to continue Bitcoin mining operations at its Montana facility and may maintain limited mining activity in Michigan during the transition.

Chief Executive Officer William B. Horne stated that the project marks another step in transforming the Michigan facility from a Bitcoin mining operation into a modern AI and high-performance computing hub. He noted that the site is being positioned to deliver premium AI computing services and could begin generating substantial, high-margin revenue as early as late September 2026.

Executive Chairman Milton "Todd" Ault III described the agreement as a major achievement for the company. He explained that while the Michigan campus currently supports roughly 28 MW of Bitcoin mining capacity, an increasing share of the site's resources will be dedicated to AI and advanced computing workloads as customer deployments ramp up. He added that the strategy is designed to maximize the long-term value of the campus while advancing plans to develop more than 300 MW of total power capacity.

Hyperscale Data believes the Michigan campus offers significant future growth potential through phased expansion initiatives. However, any additional development remains subject to factors such as regulatory approvals, financing availability, infrastructure readiness, engineering assessments, and utility agreements. The company estimates that the site could ultimately support more than 300 MW of power capacity.

Management emphasized that these expansion plans are still in the preliminary stages and face various risks and uncertainties. As a result, there is no guarantee that the proposed capacity increases will be approved, financed, constructed, or prove economically viable.

The company encourages investors and stakeholders to review its public filings, investor updates, and official announcements for additional information regarding Hyperscale Data and its subsidiaries.

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STMicroelectronics specializes in the design and manufacturing of semiconductors, operating at least two data centers in each of its factories, along with additional business infrastructure and cloud support. The demand for data centers is rising rapidly as each new generation of computer chips sees smaller transistors but increasingly complex designs, driving a surge in requirements for data storage and computing power.
 
The implementation of 3rd Gen AMD EPYC™ processors allowed STMicroelectronics to significantly expedite chip design delivery for its clients while simultaneously reducing greenhouse gas emissions. The company reported up to 12% improved performance, up to 30% lower cost per core, and up to 33% reduced electricity consumption in its data centers.
 
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