The Michigan Facility, operated by the subsidiary Alliance Cloud Services, is currently preparing to deploy an initial 20 megawatts of compute capacity. This contract spans an initial 10-year term with options for two five-year extensions. Should the agreement persist for the full 20-year duration, the company projects revenue exceeding $1.2 billion. This figure could climb to $3 billion if the client exercises its right to increase capacity to 52 megawatts.
Hyperscale Data Invests $70 Million to Launch Michigan AI Facility
Hyperscale Data has funneled more than $70 million into its Michigan AI data center, positioning the site to begin operations by November 2026. The investment secures critical equipment needed for a master services agreement with a California-based neocloud provider, marking a pivotal step in the company’s infrastructure expansion.
CEO Will Horne described the current capital deployment as a focus on operational execution. While the initial 52 megawatts represent less than 20% of the site’s total 340-megawatt potential, the company views the remaining 270 megawatts as a significant runway for future growth. Executives are now weighing long-term strategies for the subsidiary, including potential strategic partnerships, a separate initial public offering, or a full sale of the Michigan assets to maximize shareholder value.
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