Hyperscale Data (GPUS) Stock Signs $1.2B AI Data Center Master Services Agreement

TLDR

• Hyperscale Data (GPUS) signed a Master Services Agreement with a California-based neocloud provider for AI colocation services at its Michigan facility
• The 10-year deal, with extension options, could generate over $1.2 billion in revenue over a maximum 20-year term
• An expansion option to 52 megawatts could push total contract value above $3.0 billion
• The initial 20-megawatt deployment is expected to be operational in Q4 2026, with revenue potentially starting as early as late September
• The company will gradually shift the Michigan campus away from Bitcoin mining to support AI compute workloads

Hyperscale Data (GPUS) announced Tuesday it has signed a Master Services Agreement with a California-based neocloud provider to deliver AI colocation and data center services at its Michigan campus.

GPUS stock fell 10.59% on the day, trading at $0.2557, despite the headline deal.

Hyperscale Data, Inc., GPUS

The agreement covers an initial deployment of 20 megawatts of AI compute capacity, expected to go live in Q4 2026. The MSA has a 10-year initial term with two five-year extension options.

If the customer exercises the full 20-year term, the contract is expected to generate over $1.2 billion in revenue.

The deal also gives the customer an option to expand capacity to 52 megawatts total. An additional 32 megawatts is available under a separate right, which if exercised within the first two years and run through both extension options, would push total contract revenue above $3.0 billion.

Alliance Cloud Services, an indirect wholly owned subsidiary of Hyperscale Data, is retrofitting roughly 60,000 square feet of the Michigan campus to support the customer. The estimated cost for the initial 20-megawatt phase is between $100 million and $120 million.

CEO William Horne said the Michigan campus is “positioned to offer a top-tier AI compute environment,” adding that services could begin generating revenue “as soon as late September 2026.”

Shifting Away From Bitcoin Mining

As AI workloads come online, Hyperscale Data plans to progressively reassign power at the Michigan campus that currently supports Bitcoin mining. The company operates about 28 megawatts of Bitcoin mining capacity there.

Bitcoin mining operations are expected to continue at its Montana facility. Some mining activity may also be maintained at Michigan during the transition.

The company currently holds 726.9 bitcoin, valued at roughly $45.9 million. It also has an active $300 million at-the-market equity offering program through Spartan Capital Securities.

The Numbers Behind the Deal

The scale of this MSA is striking given Hyperscale Data’s current size. The company carries a market cap of just $124 million and posted $121 million in revenue over the last twelve months.

It also carries a debt load of $113 million, and analysts at InvestingPro flagged that the company is burning through cash — a factor that could affect its ability to finance the $100-120 million buildout.

Executive Chairman Milton “Todd” Ault III said the deal “represents a significant milestone,” and that the company aims to develop more than 300 megawatts of total power capacity at the Michigan campus long term.

The company was clear that expansion beyond the initial deployment remains preliminary and is subject to regulatory approvals, financing, infrastructure availability, and utility agreements.

Hyperscale Data most recently reported purchasing 8 bitcoin in the open market during the week ending June 21.

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