Hyperscale Data Engages Newmark to Arrange Non-Dilutive Long-Term Debt Financing for the Michigan AI Data Center

The financing effort targets reduced reliance on common equity, but Newmark's engagement is not a lending commitment.

Rhea-AI Summary

Hyperscale Data (GPUS) has engaged Newmark through subsidiary Alliance Cloud Services to seek long-term debt financing for its Michigan AI campus. The company aims to fund development and expansion while reducing reliance on common equity issuance. No financing has been secured; any transaction remains subject to lender underwriting, due diligence and definitive agreements.

The campus has a services agreement with a California-based neocloud provider covering an initial 20 MW of critical AI compute capacity for 10 years. The customer has two five-year extension options and a right of first offer for another 32 MW, if available. Hyperscale Data expects the first 10 MW to be energized in December 2026, with revenue-generating activities expected to begin alongside that milestone. The timetable depends on completing infrastructure and commissioning.

4 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNewmark engagement advances the pursuit of non-dilutive long-term debt financing for Michigan campus development and expansion.
• Moderate pointExisting customer agreement covers an initial 20 MW for 10 years.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Hyperscale Data expects 10 MW energized in December 2026, with revenue-generating activities beginning alongside that milestone.
• Minor point. Forward-looking: it has not happened yet and may not happen.Customer options include two five-year extensions and a first-offer right for 32 MW more, if available.

Negative

• Moderate pointFinancing remains unsecured, subject to lender underwriting, due diligence and definitive agreements.
• Minor point. Forward-looking: it has not happened yet and may not happen.The December 2026 energization timetable depends on completing necessary infrastructure and commissioning.
• Minor point. Forward-looking: it has not happened yet and may not happen.Additional customer capacity and extension periods remain subject to contractual provisions and development requirements.

Argus 15 min delay 37 alerts

+12.89% vs previous close $0.24 last price 8.4x rel. volume Open Argus

Details

Market move: GPUS +12.89% vs previous close. debt financing engagement

+9.0% Peak in 46 min

$0.22 – $0.25 Day Range

$40.81M Mkt Cap at Last Price

On Oct 28, the day this news came out, the latest delayed price for GPUS is 12.89% above the previous close. Argus tracked a peak move of +9.0% during the session. Our momentum scanner has recorded 37 alerts for this stock so far that day. The latest delayed price is $0.24. Relative volume is exceptionally heavy at 8.4x the average.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Initial contracted capacity: 20 megawatts Initial agreement term: 10 years Extension options: Two five-year options +3 more

Initial contracted capacity

20 megawatts

Michigan Campus customer agreement

Initial agreement term

10 years

Michigan Campus customer agreement

Extension options

Two five-year options

Options exercisable by the customer

Additional capacity right

32 MW

Right of first offer, if available

Potential total capacity

52 MW

If the additional capacity is available and deployed

First capacity milestone

10 MW

Expected to be energized in December 2026, subject to infrastructure and commissioning

Previous AI Reports

1 past event · Latest: Sep 17

Same Type 1 event

1. Sep 17

   Michigan campus update

   24h Move

   +1.9%

   Reported more than $70 million invested and a signed 20 MW customer agreement for the Michigan campus.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-dilutive, master services agreement, underwriting, collateral requirements, +1 more

5 terms

non-dilutive financial

"non-dilutive long-term debt financing for the development and expansion"

Non-dilutive describes funding or income that does not reduce existing shareholders’ ownership percentage. It matters to investors because it lets a company raise money or generate value—through grants, loans, licensing deals, or revenue—without issuing extra shares, so each existing share keeps the same claim on profits and control; think of adding toppings to a cake without cutting it into more slices.

master services agreement financial

"ACS entered into a master services agreement with a California-based neocloud provider"

A master services agreement is a standing contract that sets the main terms, responsibilities, pricing framework and processes for future work between two parties, allowing individual projects or orders to be added later without renegotiating core terms. For investors, it signals predictability and reduced legal friction around revenue streams and costs—like a subscription plan for services that makes future income and obligations easier to forecast and value.

underwriting financial

"subject to lender underwriting, due diligence, definitive agreements"

Underwriting is the process where a financial institution agrees to buy and then resell new stocks or bonds to investors. It matters because it helps companies raise money quickly and smoothly, while the bank takes on the risk of selling those securities at the agreed price. Think of it like a booker guaranteeing to sell all tickets for a concert before opening the doors.

View in glossary

collateral requirements financial

"including interest expense, repayment obligations, collateral requirements and covenants"

Collateral requirements are the rules or contract terms that specify what assets a borrower, trader, or counterparty must pledge to secure an obligation and how much of those assets must be posted. They set the type of acceptable collateral (cash, securities, letters of credit, etc.), the required value or percentage relative to the exposure, and procedures for revaluing collateral and demanding additional postings if the collateral’s value falls (margin calls). These requirements are set by lenders, exchanges, clearinghouses, or bilateral agreements and determine when collateral can be returned or reused and what happens if a party fails to meet the requirement.

covenants financial

"collateral requirements and covenants, and other terms or conditions"

Covenants are rules written into loan or bond contracts that require a company to do or avoid certain things—like keeping debt below a set level or not selling key assets. They matter to investors because they protect lenders and influence a company’s flexibility: tight covenants can limit growth plans but lower default risk, while loose covenants give freedom but increase credit risk, similar to how household rules affect a family’s budget choices.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LAS VEGAS, Oct. 28, 2026 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence ("AI") data center company ("Hyperscale Data" or the "Company"), today announced that Alliance Cloud Services, LLC ("ACS"), an indirect wholly owned subsidiary of Hyperscale Data, has engaged Newmark Group, Inc. ("Newmark")") to identify prospective lenders to provide non-dilutive long-term debt financing for the development and expansion of the Company's AI data center campus in Michigan (the "Michigan Campus"). The engagement supports the Company's strategy to fund the Michigan Campus on an institutional basis and reduce reliance on issuances of its common equity.

Newmark is a world leading commercial real estate advisor and service provider with a dedicated data center and digital infrastructure capital markets practice. Newmark's publicly announced data center assignments include arranging a $7.1 billion construction loan in 2025 for an AI data center project in Abilene, Texas, and arranging $975 million in financing in 2026 for a newly constructed data center in Northern Virginia. More generally, Newmark arranged for approximately $59 billion in investments and an additional $73 billion in debt placements during 2025. Hyperscale Data believes that specialized experience in data center financing will be valuable in presenting the Michigan Campus to prospective lenders and evaluating financing alternatives that address the project's requirements.

"Hiring Newmark is an important step toward financing our Michigan Campus on an institutional, long-term basis," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "Successfully securing the debt financing we are pursuing would, once consummated, substantially reduce our need to raise additional equity capital for this project. We believe Newmark's significant experience and expertise can help us pursue a financing structure that reflects the scale of the Michigan Campus and its anticipated revenue profile. Our objective is to fund development responsibly while preserving more of the project's long-term value for our stockholders."

William Horne, Chief Executive Officer of Hyperscale Data, stated, "Long-term debt financing arranged with Newmark's assistance would reduce our reliance on outside equity and provide a stronger financial foundation for building and operating the Michigan Campus over the long term. We are interested in financing that supports the infrastructure needed for customer deployments and gives us a clear framework for funding the project as it develops. Our focus is on securing appropriate terms, managing the cost of capital and limiting dilution while maintaining the financial flexibility needed to execute."

The Company's financing objective is to secure debt capital suited to the Michigan Campus' development requirements and anticipated operating cash flows. The process is intended to evaluate the availability of long-term funding, potential borrowing structures and repayment schedules appropriate for the Michigan Campus' expected progression from construction and commissioning into revenue-generating operations.

Management believes that obtaining suitable institutional debt financing could improve the Company's ability to plan capital expenditures across successive development stages. The Company will evaluate potential financing based on its overall economic terms, including interest expense, repayment obligations, collateral requirements and covenants, and other terms or conditions that lenders may require.

The Michigan Campus is operated by ACS. As previously announced, ACS entered into a master services agreement with a California-based neocloud provider (the "Customer") for colocation and related data center services supporting an initial 20 megawatts ("MW") of critical AI compute capacity.

The agreement has an initial term of 10 years, with two five-year extension options exercisable by the Customer. It also provides the customer with a right of first offer for an additional 32 MW, if available, which could bring its total deployment to 52 MW of critical AI compute capacity. Additional capacity and extension periods remain subject to the applicable contractual provisions and development requirements.

As previously disclosed, the Company expects the first 10 MW of critical AI compute capacity at the Michigan Campus to be energized in December 2026, with revenue-generating activities expected to begin in connection with that milestone. Achieving this timetable remains subject to completion of the necessary infrastructure and commissioning activities.

The engagement of Newmark does not constitute a commitment to lend or confirmation that financing has been secured. Any financing will be subject to lender underwriting, due diligence, definitive agreements and applicable closing conditions. The amount, pricing, maturity and other terms of any financing have not been announced. There can be no assurance that financing will be obtained on terms acceptable to the Company, or at all, or that it will eliminate the need for additional equity capital.

For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data's public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

About Hyperscale Data, Inc.

Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it offers colocation and hosting services for the emerging AI ecosystems and other industries. Another of Hyperscale Data's wholly owned subsidiaries, Ault Capital Group, Inc. ("ACG"), is a hybrid private equity firm and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.

Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the digital assets and the third wholly owned subsidiary of the Company, Omnipresent Robotics, LLC. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through Ault Lending, LLC, a licensed lending subsidiary. Hyperscale Data's headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.

On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the "Series F Preferred Stock") to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the "ACG Shares"). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be shareholders of ACG upon the occurrence of the Divestiture.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "believes," "plans," "anticipates," "projects," "estimates," "expects," "intends," "strategy," "future," "opportunity," "may," "will," "should," "could," "potential," or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company's business and financial results are included in the Company's filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company's website at hyperscaledata.com.

 

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SOURCE Hyperscale Data Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Has Hyperscale Data secured financing for its Michigan AI data center?

No financing has been secured through the Newmark engagement, which is not a commitment to lend. Newmark has been engaged to identify prospective lenders for non-dilutive long-term debt financing. Any financing remains subject to lender underwriting, due diligence, definitive agreements and applicable closing conditions.

When does Hyperscale Data expect its Michigan AI campus to begin generating revenue?

Hyperscale Data expects revenue-generating activities to begin in connection with energizing the first 10 MW in December 2026. Achieving that timetable remains subject to completion of the necessary infrastructure and commissioning activities.

What financing terms will Hyperscale Data evaluate for the Michigan campus?

Hyperscale Data will evaluate financing based on its overall economic terms, including interest expense, repayment obligations, collateral requirements and covenants. The process is intended to assess borrowing structures and repayment schedules suited to the campus's expected progression from construction and commissioning into revenue-generating operations.