Hyperscale Data Shuts Down Michigan Bitcoin Mining Site
Hyperscale Data has halted Bitcoin mining operations at its Michigan data center, effective September 1. The company made this decision after a customer, identified as neocloud from California, inspected the facility and reviewed preparation work, including engineering design and equipment procurement.
The shutdown allows the site's electrical capacity, physical infrastructure, personnel, and capital to be directed towards the customer's deployment of artificial-intelligence infrastructure under an existing master services agreement. The contract has a 20-megawatt deployment with a 10-year term and two optional five-year extensions.
Hyperscale Data estimates that the contract could generate over $1.2 billion if the customer uses the full 20-year maximum term, but this figure is a company projection and not revenue already earned. The customer also holds an option for another 32 megawatts, which would bring total contract revenue to potentially exceed $3 billion.
The site ultimately plans to have about 340 megawatts of power capacity, with the expanded customer deployment using no more than 20% of that total. Hyperscale Data expects gains from selling the mining servers but has not disclosed a buyer, price, or timetable.