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
News Market Reaction
On the day this news was published, GPUS declined 11.91%, reflecting a significant negative market reaction. Argus tracked a trough of -16.0% from its starting point during tracking. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $25M at that time.
Data tracked by StockTitan Argus on the day of publication.
Files
The Company currently operates approximately 30 MW of power at the
"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
Shelf Registration Filed to Enable Long-Term Financial Flexibility
To support the
Phased Expansion Timeline:
The
- 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
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,
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
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SOURCE Hyperscale Data Inc.
FAQ
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