Hyperscale Data Kicks Off Significant Build-Out at Michigan Campus to Power NVIDIA Blackwell Artificial Intelligence Infrastructure

Rhea-AI Summary

Hyperscale Data (NYSE American: GPUS) has initiated a strategic conversion of its Michigan Data Center to support expanded AI infrastructure, specifically for NVIDIA Blackwell systems. The facility, spanning 34.5 acres with a 617,000-square-foot data center building and 28 megawatts of power capacity, will maintain a dual-use model supporting both Bitcoin mining and AI operations.

The company currently operates 16 NVIDIA GPU-equipped servers in a dedicated data hall, which will remain active during the enhancement process. The expansion represents a strategic shift from single-purpose blockchain mining to a multi-layered digital infrastructure hub, with Bitcoin mining operations continuing uninterrupted during the AI infrastructure deployment.

Positive

• Facility's large scale with 617,000 sq ft and 34.5 acres enables significant expansion potential
• Dual-use model allows revenue continuity from Bitcoin mining during AI infrastructure deployment
• Strategic positioning in emerging AI infrastructure market with NVIDIA Blackwell systems
• Existing 28 megawatt power capacity supports both AI and blockchain operations

Negative

• Significant capital investment required for AI infrastructure conversion
• Potential operational complexity in managing dual-use facility

Insights

Data Center Infrastructure Specialist

Hyperscale Data's dual-purpose facility conversion leverages existing infrastructure for AI compute expansion while maintaining bitcoin mining operations.

Hyperscale Data's strategic pivot to convert portions of its Michigan facility for AI computing represents a significant business evolution that merges two high-demand computing workloads under one roof. The company is leveraging its substantial physical assets—34.5 acres with a 617,000-square-foot data center drawing 28 megawatts of power—to create a dual-purpose facility supporting both cryptocurrency mining and AI workloads.

What makes this conversion technically feasible is the compatibility of power and cooling infrastructure between high-density blockchain operations and AI compute clusters. Both workloads require substantial electricity and thermal management, allowing Hyperscale to repurpose existing systems rather than building from scratch. The company's approach of maintaining 16 NVIDIA GPU servers during renovation demonstrates operational continuity while preparing for advanced NVIDIA Blackwell infrastructure.

The phased implementation strategy minimizes revenue disruption, as bitcoin mining continues generating cash flow during the AI infrastructure buildout. This dual-revenue approach addresses a critical challenge in data center economics—maximizing return on fixed infrastructure investments through workload diversification.

This conversion mirrors an industry-wide trend where single-purpose mining facilities are evolving into multi-workload compute hubs. The economics make sense: high-power, large-footprint facilities initially built for cryptocurrency mining can be partially repurposed for AI training and inference, potentially providing more stable revenue streams alongside the volatility-prone mining operations.

LAS VEGAS, Sept. 26, 2025 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today announced that it has begun the process of converting a portion of the space and power at its Michigan Data Center (the "Michigan Facility") to enable additional capacity to support artificial intelligence ("AI") solutions. The Company has already begun ordering the necessary equipment and initial construction has begun on the portions of the Michigan Facility that are dedicated to AI operations.

The Michigan Facility sits on 34.5 acres, utilizes approximately 28 megawatts and includes a 617,000-square-foot data center building, providing the scale and flexibility to support both Bitcoin mining and advanced AI compute in the same location. This dual-use model follows a proven playbook, where blockchain infrastructure and AI can successfully coexist under one roof.

Current AI operations include 16 servers populated with NVIDIA graphics processing units housed in a dedicated data hall, which will remain active during the site enhancements. The Company has also begun preparations to install the latest NVIDIA Blackwell servers as part of the phased buildout. Importantly, Bitcoin mining operations will continue uninterrupted while the new AI infrastructure is deployed, ensuring ongoing revenue generation as Hyperscale Data scales into AI.

"Our Michigan Facility is well positioned for growth," said William Horne, Chief Executive Officer of Hyperscale Data. "With 34.5 acres and more than 600,000 square feet of capacity, we can both maintain our Bitcoin mining operations and deploy next-generation NVIDIA Blackwell systems. This first phase of the conversion underscores our vision of building one of the leading dual-use AI and blockchain compute facilities in the United States."

Hyperscale Data's conversion efforts reflect broader industry momentum, where facilities are evolving from single purpose blockchain mining sites into multi-layered digital infrastructure hubs. By leveraging its scale, location, and technical expertise, the Company aims to deliver secure, scalable compute power for enterprises, AI workloads, and blockchain systems.

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 mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, Ault Capital Group, Inc. ("ACG"), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.

Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in the first quarter of 2026. 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. 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, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through 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

What is Hyperscale Data's plan for its Michigan Data Center facility?

Hyperscale Data is converting part of its Michigan Data Center to support AI infrastructure, specifically NVIDIA Blackwell systems, while maintaining Bitcoin mining operations. The facility spans 617,000 square feet and has 28 megawatts of power capacity.

How many NVIDIA GPU servers does Hyperscale Data currently operate?

Hyperscale Data currently operates 16 servers equipped with NVIDIA GPUs in a dedicated data hall, which will remain active during the facility enhancement.

Will Hyperscale Data's Bitcoin mining operations be affected by the AI expansion?

No, Bitcoin mining operations will continue uninterrupted while the new AI infrastructure is deployed, ensuring ongoing revenue generation.

What is the total size of Hyperscale Data's Michigan facility?

The Michigan facility sits on 34.5 acres and includes a 617,000-square-foot data center building with 28 megawatts of power capacity.

How is GPUS stock positioning itself in the AI infrastructure market?

Hyperscale Data is transforming from a single-purpose blockchain mining facility into a dual-use AI and blockchain compute facility, planning to deploy next-generation NVIDIA Blackwell systems.