Hyperscale Data Invests Over $70 Million in Michigan AI Data Center, Targets November 2026 Operations

Hyperscale Data, Inc. has invested more than $70 million into Alliance Cloud Services, LLC and the development of its Michigan AI data center as of September 15, 2026, marking a significant milestone in the company's effort to bring contracted AI compute capacity online at the facility. The investment represents a substantial portion of the overall capital program required to prepare the Michigan Facility for deployment of AI compute capacity to ACS' customer, a California-based neocloud provider, under a previously announced master services agreement.

The company has acquired a substantial amount of the equipment required to bring the contracted capacity online at the Michigan Facility and is currently working toward commencing operations under the MSA in November 2026, at which point Hyperscale Data expects to begin generating revenue and cash flow from the agreement. The MSA provides for an initial 20 megawatts of critical AI compute capacity with an initial 10-year term and two five-year extension options. If the agreement continues for the entire 20-year term, the company expects it to generate more than approximately $1.2 billion in revenue.

Additionally, the customer has the right to increase critical AI compute capacity up to a total of 52 MW. If fully exercised and maintained for the entire 20-year term, this is expected to increase total contract revenue to more than $3.0 billion. A full 52 MW deployment would represent less than 20% of the Michigan Facility's approximately 340 MW total potential capacity, leaving approximately 270 MW of potential additional capacity for future development and additional customer deployments, subject to obtaining the required power, infrastructure, financing and regulatory approvals.

"Our investment of more than $70 million in ACS and the Michigan campus is about execution," stated Will Horne, Chief Executive Officer of Hyperscale Data. "This capital is part of the overall investment required to prepare the facility for our neocloud customer under the MSA, and we have now acquired a substantial amount of the equipment required for the planned deployment. We are working toward bringing the initial contracted capacity online beginning in November, when we expect to start generating revenue and cash flow under an agreement that could generate more than $3.0 billion in revenue over a 20-year term."

"We believe the more than $70 million invested to date has created a substantial foundation for this transformation," continued Mr. Horne. "Our immediate priority is getting our customer online, generating cash flow and successfully executing the initial deployment. From there, we intend to continue developing the campus and pursuing the significant amount of potential capacity that remains."

The company continues to evaluate the optimal long-term strategy for ACS and the Michigan Facility, including continued development, strategic partnerships, additional customer deployments, a potential separation or initial public offering of ACS, or a potential sale of the Michigan Facility if the company believes such a transaction would maximize stockholder value. Hyperscale Data expects to provide additional updates as material developments and deployment milestones are achieved.