Hyperscale Data Targets Full Buildout of 340 MW Michigan AI Data Center Campus in 2029

Rhea-AI Summary

Hyperscale Data (NYSE American: GPUS) has unveiled plans for a major expansion of its Michigan AI data center campus to 340 megawatts (MW) by 2029. The company currently operates 30 MW and plans to increase to 70 MW within 20 months, with full buildout expected within 44 months of utility agreement execution.

To support this expansion, Hyperscale Data has filed a $125 million shelf registration, though no immediate capital raise is planned. The 34-acre Michigan facility currently generates revenue through digital asset mining and colocation services for AI ecosystems. The company has reached preliminary agreements with local utilities to increase available power to 300 MW plus an additional 40 MW from natural gas.

Positive

• Strategic expansion to 340 MW positions company for growing AI infrastructure demand
• Existing revenue generation from digital asset mining and colocation services
• Preliminary utility agreements secured for power expansion
• No immediate dilution planned despite $125M shelf registration filing
• Comparable industry project (Applied Digital) projected to generate $7B over 15 years

Negative

• Extended 44-month timeline for full buildout completion
• Significant capital requirements for expansion
• Current operations limited to only 30 MW of power
• Final utility authorization still under negotiation
• Existing debt requiring reduction

Insights

Data Center Infrastructure Analyst

Hyperscale Data's 340MW Michigan expansion positions them in the lucrative AI infrastructure market, with phased buildout through 2029.

Hyperscale Data's announcement presents a significant long-term strategic pivot toward becoming a major player in the AI data center space. The company is taking a measured approach with its Michigan facility expansion from the current 30MW to 340MW by Q3 2029 - a more than 11-fold increase in capacity. This phased approach balances ambition with operational reality, as building out data center infrastructure at this scale requires substantial capital, utility coordination, and market development.

The filing of the $125 million shelf registration is a prudent financial move that provides capital raising flexibility without immediate dilution. This mechanism allows the company to access capital markets opportunistically as construction milestones approach, potentially securing better terms than if forced to raise under time pressure.

What's particularly noteworthy is the company's preliminary agreements with utilities for both electric (300MW) and natural gas (40MW) power. Securing power commitments is often the most challenging hurdle in data center development, especially at this scale. The 44-month timeline for full implementation following final agreement execution appears realistic given the infrastructure requirements.

The company's strategic reference to Applied Digital's $7 billion contract with CoreWeave signals their ambitions in the high-margin AI infrastructure space, moving beyond their legacy digital asset mining operations. While Hyperscale doesn't explicitly project their own revenue potential, this comparison provides a benchmark for investors to consider the substantial revenue generation possibilities of successfully executed AI data center projects.

The transition from cryptocurrency mining to AI infrastructure represents a strategic pivot toward more sustainable, regulated revenue streams with higher barriers to entry and potentially more favorable margins. However, the execution risk remains substantial given the competitive landscape and capital requirements for such an ambitious buildout.

Files $125 Million Shelf Registration to Provide Long-Term Financial Flexibility; No Immediate Capital Raise Planned

LAS VEGAS, July 21, 2025 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today announced a strategic development roadmap to fully build out its data center campus in Michigan that is optimized for artificial intelligence ("AI") to 340 megawatts ("MW"). This phased expansion underscores the Company's long-term commitment to supporting AI, machine learning and high-performance computing ("HPC") workloads.

The Company currently operates approximately 30 MW of power at the Michigan facility and expects to increase the power capacity to 70 MW over the next 20 months. The full 340 MW buildout is anticipated within 44 months from execution of an agreement with the local utility provider and securing appropriate funding.

"We are building a scalable, AI-centric digital infrastructure platform," said William B. Horne, Chief Executive Officer of Hyperscale Data. "As demand for computing power accelerates, our Michigan campus positions us to scale efficiently and profitably to meet that demand."

Shelf Registration Filed to Enable Long-Term Financial Flexibility

To support the Michigan expansion and other strategic initiatives, the Company recently filed a shelf registration statement for up to $125 million (the "Registration Statement"). At this time, Hyperscale Data does not intend to raise capital under this Registration Statement. The Registration Statement provides flexibility to access capital markets over time as construction and development of the Michigan campus continues.

Phased Expansion Timeline:

The Michigan facility, located on an approximately 34-acre site, currently generates revenue through digital asset mining and by providing colocation and hosting services for the emerging AI ecosystems and other industries. Planned development milestones include:

• Current Operations: Approximately 30 MW online and operational;
  
  
• Mid-Term Expansion: Add 40 MW by Second Quarter of 2027; and
  
  
• Full Buildout: Additional 270 MW by Third Quarter of 2029, for a total of 340 MW.

In February 2025, the Company's indirect wholly owned subsidiary, Alliance Cloud Services, LLC ("ACS"), reached an agreement in principle with the local utility to increase available power to 300 MW. The final letter of authorization is currently under negotiation, and once executed, the full upgrade is expected to be completed within 44 months. Additionally, ACS has reached an agreement in principle with the local natural gas utility to supply an extra 40 MW of power.

Positioning for the Future of AI Infrastructure

Hyperscale Data's expansion plan is aligned with surging industry demand for purpose-built, high-density compute infrastructure. The Company cites comparable projects such as Applied Digital Corporation's recently announced 250 MW contract with CoreWeave, Inc., which is projected to generate over $7 billion in revenue over 15 years.

As the Company enters the second half of 2025, it remains focused on reducing debt, streamlining operations and advancing its strategic transition to a pureplay AI data center platform.

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 to divest itself of ACG (the "Divestiture") on or about December 31, 2025, though there can be no assurance that the Divestiture will be completed during 2025. Upon the occurrence of the Divestiture, the Company would solely be an owner and operator of data centers to support HPC services, though it may at that time continue to operate in the digital asset space as described in the Company's filings with the SEC. 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 Convertible 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 stockholders 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 (GPUS) planned data center capacity in Michigan by 2029?

Hyperscale Data plans to expand its Michigan AI data center campus to a total capacity of 340 megawatts (MW) by the third quarter of 2029.

How much power does Hyperscale Data's Michigan facility currently operate?

The facility currently operates approximately 30 MW of power and plans to increase to 70 MW over the next 20 months.

What is the size of Hyperscale Data's shelf registration filing in 2025?

Hyperscale Data filed a $125 million shelf registration statement to provide long-term financial flexibility, with no immediate plans for capital raising.

How long will it take to complete the full power upgrade at Hyperscale Data's Michigan facility?

The full power upgrade is expected to be completed within 44 months after executing the final utility agreement.

What are the current revenue sources for Hyperscale Data's Michigan facility?

The facility currently generates revenue through digital asset mining and providing colocation and hosting services for AI ecosystems and other industries.