Hyperscale Data, Inc. (NYSE:GPUS), an artificial intelligence ("AI") data center company anchored by Bitcoin ("Hyperscale Data" or the "Company"), today announced the signing of a Master Services Agreement ("MSA") to provide colocation and related data center services (the "Services") between Alliance Cloud Services, LLC ("ACS"), an indirect wholly owned subsidiary of the Company, and a California-based neocloud provider (the "Customer") at its Michigan data center campus (the "Michigan Campus"). The Customer's offerings include cloud and managed services dedicated to providing tailored, state-of-the-art compute resources and high-speed storage solutions at scale with industry leading partners.

The MSA provides for the deployment of 20 megawatts ("MW") of critical AI compute capacity that is expected to be operational during the fourth quarter of 2026. Further, the MSA provides for ACS' grant of an option to the Customer to expand up to a total of 52 MW of critical AI compute capacity. The MSA has an initial term of 10 years with two five-year extension options that may be exercised by the Customer (collectively, the "Maximum Term"). If exercised for the Maximum Term, the MSA is expected to generate in excess of $1.2 billion in revenue. The MSA also provides the Customer with a right to an additional 32 MW of critical AI compute capacity which, if exercised within the first two years of the initial term and continues through the two five-year extension options, would be expected to result in total contract revenue in excess of $3.0 billion.  

ACS is actively working on the procurement of key electrical and infrastructure equipment to support the rapid deployment and has begun the process of retrofitting approximately 60,000 square feet of its Michigan Campus to support the Customer's operations at an estimated cost of between $100 million and $120 million for the initial 20 MW deployment.

As AI compute capacity is commissioned and the Customer's workloads are deployed, the Company expects to progressively reallocate portions of the power at the Michigan Campus currently utilized for Bitcoin mining. The Company currently anticipates continuing to operate Bitcoin mining capacity at its Montana facility and may maintain certain mining operations at the Michigan Campus during the transition period.