Hyperscale Data Inc. (NYSE:GPUS) said Monday it would seriously consider selling its Michigan AI data center campus at a valuation of at least $750 million.
Management estimates the campus could be worth between $750 million and $1.25 billion. The company cited its existing infrastructure, power access, expansion potential and valuations of publicly traded AI infrastructure companies.
AI Data Center Deal Could Generate $3 Billion
Hyperscale Data subsidiary Alliance Cloud Services recently signed a master services agreement with a California-based neocloud provider.
The deal covers an initial 20 megawatts of AI computing capacity. It has a 10-year term and two five-year extension options. If both options are exercised, Hyperscale Data expects the initial deployment to generate more than $1.2 billion in revenue over 20 years.
The customer also has rights to another 32 MW. A full 52 MW deployment could generate more than $3 billion over the maximum contract term.
The company believes the Michigan campus could eventually support more than 300 MW. However, further expansion depends on financing, regulatory approvals, utility agreements and customer demand.
Hyperscale Data Weighs Sale Or IPO
The company is evaluating several options for the campus. These include an outright sale, continued development or an initial public offering of its Sentinum subsidiary.
Management said it does not currently plan to recommend a sale below $750 million. However, the valuation range is management’s estimate and is not based on an independent appraisal or fairness opinion.
No final decision has been made, and the company said there is no assurance that its strategic review will result in a transaction.
GPUS Price Action: Hyperscale Data shares were down 1.13% at $0.18 at the time of publication on Monday, according to Benzinga Pro data.
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