Hyperscale Data’s subsidiary Alliance Cloud Services has signed a contract with an unnamed California-based neocloud for 20MW of compute capacity at Hyperscale’s Michigan campus.. The agreement will see 20MW deployed and operational in Q4 of 2026, and could see the customer scaling up to 52MW of compute capacity..
Hyperscale Data’s Michigan data center – BitNile. The identity of the neocloud customer has not been provided.. The contract will run for an initial term of ten years with two five-year extension options.
Should it run to its maximum term, the deal is valued at around $1.2 billion.. If the customer scales up to 52MW, the total value of the deal could then reach $3bn.. Alliance Cloud Services (ACS) is currently working on the procurement of key electrical and infrastructure equipment for the data center campus, and is retrofitting 60,000 sq ft (5,575 sqm) at the site for the unnamed customer’s deployment.
This process is expected to cost ACS $100-120m.. The Michigan campus is currently mostly used for Bitcoin mining, but the company will reallocate power to AI compute as it is deployed. Hyperscale Data has said it may continue certain mining operations at the Michigan site.. “I am pleased by the progress that we have made as we continue the evolution of our Michigan campus from a Bitcoin mining-focused facility into a next-generation AI and high-performance computing campus,” said William B.
Horne, Hyperscale Data CEO. “We believe our Michigan Campus is positioned to offer a top-tier AI compute environment, and these Services are expected to begin generating material, high-margin revenue upon deployment, which may begin as soon as late September 2026.”. Hyperscale Data acquired the data center located at 415 East Prairie Ronde Street, Dowagiac, in May 2022.
The facility spans 617,000 sq ft (57,320 sqm). Built in 1972 as a manufacturing space, Hyperscale has been repurposing the site for HPC and colocation since early 2025, and earlier this month revealed further plans for a robotics lab.. The company aims to expand the site – currently operating with 30MW of capacity -to 340MW, including 40MW of behind-the-meter natural gas capacity.. “The signing of an MSA represents a significant milestone for the Company,” said Milton Ault III, executive chairman of Hyperscale Data. “We currently operate approximately 28MW of Bitcoin mining capacity at the Michigan Campus.
As the customer’s deployments are brought online, we expect to allocate an increasing portion of the Michigan campus to AI and high-performance computing workloads. We believe this strategy positions us to maximize the long-term value of the Michigan Campus as we work toward developing more than 300MW of total power capacity.”.
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