Hyperscale Data Scores $3 Billion AI Hosting Deal Amid Bitcoin Pivot

Hyperscale Data has secured a significant deal to convert its Michigan data center into an AI hosting site. The company's Alliance Cloud Services subsidiary signed a master services agreement with a California-based neocloud provider for 20 megawatts of AI compute capacity at the Dowagiac campus.

The initial agreement runs for 10 years, with two five-year extension options, and could generate more than $1.2 billion in revenue if the customer stays through the maximum term. The customer also has the right to add up to 32 megawatts within the first two years, which would increase the contract value to over $3 billion.

Hyperscale Data expects to progressively reallocate portions of power from Bitcoin mining to AI and high-performance computing as customer workloads are deployed. The company has already begun retrofitting about 60,000 square feet of the campus for the first 20 megawatt deployment, with an initial buildout cost between $100 million and $120 million.