Hyperscale Data sets up $120M reserve for Michigan AI campus

Hyperscale Data, Inc. has established a dedicated capital reserve account targeting approximately $120 million to support the continued development of its Michigan AI data center campus. The Michigan AI development reserve account aims to fund the infrastructure required for the company's strategic shift towards AI services. To provide investors with greater visibility, Hyperscale Data intends to begin publishing monthly Michigan AI infrastructure progress reports starting in July 2026, detailing the account balance, capital deployed, and construction milestones.

Contract Terms and Expansion Options

The company previously announced a Master Services Agreement (MSA) with a California-based neocloud provider to deliver 20MW of critical AI compute capacity. This agreement is expected to generate in excess of $1.2 billion in revenue over an initial term of 10 years, with two five-year extension options available. The initial 20MW capacity is scheduled to become operational during the fourth quarter of 2026.

Contract Feature	Details
Initial Capacity	20 MW
Expansion Option	Up to 52 MW total
Initial Term	10 years
Extension Options	Two five-year periods
Expected Revenue (Base)	> $1.2 billion
Expected Revenue (Max)	> $3.0 billion

Balance Sheet and Capital Expenditure

Hyperscale Data reported holding approximately $94.8 million in cash, restricted cash, Bitcoin, and silver as of June 24, 2026. The estimated capital expenditure for the initial 20MW deployment ranges between $100 million and $120 million. Alliance Cloud Services, LLC, an indirect wholly owned subsidiary, is procuring key electrical and infrastructure equipment. The company has commenced retrofitting approximately 60,000 square feet of the Michigan Campus, which could eventually support more than 300 megawatts.

Operational Transition

As the AI compute capacity is commissioned, Hyperscale Data plans to progressively reallocate power currently utilized for Bitcoin mining at the Michigan Campus. The company intends to continue operating Bitcoin mining capacity at its Montana facility. Hyperscale Data reported holding 726.9425 Bitcoin as of June 21, 2026, valued at approximately $45.9 million based on a closing price of $63,238.

Hyperscale Data, Inc. (NYSE: GPUS) has completed the acquisition of 48.5 acres of forested land to expand its Michigan AI Data Center Campus to approximately 83 acres in total. This strategic move more than doubles the size of the campus, providing a natural buffer between operations and the surrounding area. The company continues to target a long-term development potential of up to 590 MW of power capacity across its Michigan and Montana assets to support growing demand for artificial intelligence infrastructure.

Michigan Campus Expansion

The recent acquisition solidifies the company's footprint at the Michigan AI data center campus. Executive Chairman Milton "Todd" Ault III stated that the land purchase allows for efficient and responsible growth while maximizing service offerings for potential customers. The expansion follows a recently signed master services agreement and builds on the company's progress in developing the site. The Michigan campus retains a long-term development target of up to 340 MW of power capacity.

Capacity Targets and Development Plans

Hyperscale Data's strategy focuses on significant power capacity additions at its existing locations. In addition to the Michigan expansion, the company is evaluating opportunities in Montana, where utility-related developments could enable up to 125 MW of capacity at each of its two locations. This would total an additional 250 MW, bringing the aggregate potential across both states to 590 MW. The potential power increase would be incremental over time, subject to regulatory approvals, financing, infrastructure availability, engineering studies, and utility agreements.

Location	Development Potential (MW)
Michigan AI Campus	Up to 340 MW
Montana (2 locations)	Up to 250 MW
Total Potential	Up to 590 MW

Strategic Initiatives and Corporate Updates

The company is exploring the potential role of Small Modular Reactors (SMRs) in its future Montana development plans to ensure access to scalable, reliable, and cost-effective power solutions for AI computing. Management is also providing updates on robotics and embodied AI initiatives associated with the Michigan campus, as well as its Bitcoin treasury strategy. Hyperscale Data currently expects the divestiture of its subsidiary, Ault Capital Group, Inc., to occur in the second quarter of 2027, which would transition the company to focus solely on data center operations and digital asset holdings.