Hyperscale Data Engages Northland Capital Markets to Explore Strategic Options for Michigan Data Center
Hyperscale Data (NYSE American: GPUS) has engaged Northland Capital Markets to explore strategic alternatives for its Michigan Data Center. Northland brings significant expertise, having advised on over $6 billion of high-performance computing data center transactions in the past year.
The Michigan Facility, situated on 34.5 acres, currently has approximately 30 megawatts of available power. The company has reached an agreement in principle with the local utility to increase power capacity to approximately 300 megawatts. Strategic options under consideration include raising debt or equity for expansion, forming joint ventures, development, monetization, or strategic partnerships.
The power upgrade project faces various risks, including potential failure to execute a definitive agreement, insufficient funding, regulatory hurdles, and challenges in obtaining necessary easements and land rights.
Hyperscale Data (NYSE American: GPUS) ha incaricato Northland Capital Markets di esplorare alternative strategiche per il suo Data Center in Michigan. Northland porta una significativa esperienza, avendo fornito consulenza su oltre 6 miliardi di dollari di transazioni relative a data center ad alte prestazioni nell'ultimo anno.
La struttura del Michigan, situata su 34,5 acri, dispone attualmente di circa 30 megawatt di potenza disponibile. L'azienda ha raggiunto un accordo di principio con l'ente locale per aumentare la capacità energetica a circa 300 megawatt. Le opzioni strategiche in fase di valutazione includono l'emissione di debito o capitale per l'espansione, la formazione di joint venture, sviluppo, monetizzazione o partnership strategiche.
Il progetto di potenziamento dell'energia affronta vari rischi, tra cui la potenziale impossibilità di eseguire un accordo definitivo, finanziamenti insufficienti, ostacoli normativi e difficoltà nell'ottenere le necessarie servitù e diritti fondiari.
Hyperscale Data (NYSE American: GPUS) ha contratado a Northland Capital Markets para explorar alternativas estratégicas para su Centro de Datos en Michigan. Northland aporta una experiencia significativa, habiendo asesorado en más de 6 mil millones de dólares en transacciones de centros de datos de alto rendimiento en el último año.
La instalación de Michigan, ubicada en 34.5 acres, actualmente tiene aproximadamente 30 megavatios de potencia disponible. La empresa ha llegado a un acuerdo de principio con la empresa local de servicios públicos para aumentar la capacidad de energía a aproximadamente 300 megavatios. Las opciones estratégicas en consideración incluyen la obtención de deuda o capital para la expansión, la formación de empresas conjuntas, desarrollo, monetización o asociaciones estratégicas.
El proyecto de actualización de energía enfrenta varios riesgos, incluidos la posible incapacidad para ejecutar un acuerdo definitivo, financiamiento insuficiente, obstáculos regulatorios y desafíos para obtener las servidumbres y derechos de tierra necesarios.
하이퍼스케일 데이터 (NYSE American: GPUS)는 미시간 데이터 센터의 전략적 대안을 모색하기 위해 노스랜드 캐피탈 마켓에 의뢰했습니다. 노스랜드는 지난 1년 동안 60억 달러 이상의 고성능 컴퓨팅 데이터 센터 거래에 대한 자문 경험을 보유하고 있습니다.
미시간 시설은 34.5에이커에 위치하며 현재 약 30메가와트의 가용 전력을 보유하고 있습니다. 회사는 전력 용량을 약 300메가와트로 늘리기 위해 지역 유틸리티와 원칙적으로 합의했습니다. 고려 중인 전략적 옵션에는 확장을 위한 부채 또는 자본 조달, 합작 투자 형성, 개발, 수익화 또는 전략적 파트너십이 포함됩니다.
전력 업그레이드 프로젝트는 최종 계약을 체결하지 못할 가능성, 자금 부족, 규제 장애물, 필요한 통행권 및 토지 권리 확보의 어려움 등 여러 위험에 직면해 있습니다.
Hyperscale Data (NYSE American: GPUS) a mandaté Northland Capital Markets pour explorer des alternatives stratégiques pour son centre de données du Michigan. Northland apporte une expertise significative, ayant conseillé sur plus de 6 milliards de dollars de transactions de centres de données haute performance au cours de l'année passée.
La structure du Michigan, située sur 34,5 acres, dispose actuellement d'environ 30 mégawatts de puissance disponible. L'entreprise a conclu un accord de principe avec le fournisseur local pour augmenter la capacité énergétique à environ 300 mégawatts. Les options stratégiques à l'étude incluent l'émission de dettes ou de capitaux pour l'expansion, la formation de coentreprises, le développement, la monétisation ou des partenariats stratégiques.
Le projet de mise à niveau de l'énergie fait face à divers risques, notamment l'éventualité de ne pas parvenir à un accord définitif, un financement insuffisant, des obstacles réglementaires et des défis pour obtenir les servitudes et droits fonciers nécessaires.
Hyperscale Data (NYSE American: GPUS) hat Northland Capital Markets beauftragt, strategische Alternativen für sein Rechenzentrum in Michigan zu prüfen. Northland bringt umfangreiche Expertise mit, da es im vergangenen Jahr bei über 6 Milliarden Dollar an Transaktionen von Hochleistungs-Rechenzentren beraten hat.
Die Einrichtung in Michigan befindet sich auf 34,5 Acres und hat derzeit etwa 30 Megawatt verfügbare Leistung. Das Unternehmen hat eine grundsätzliche Vereinbarung mit dem lokalen Versorgungsunternehmen getroffen, um die Leistungskapazität auf etwa 300 Megawatt zu erhöhen. In Betracht gezogene strategische Optionen umfassen die Aufnahme von Schulden oder Eigenkapital zur Expansion, die Bildung von Joint Ventures, Entwicklung, Monetarisierung oder strategische Partnerschaften.
Das Projekt zur Leistungssteigerung sieht verschiedene Risiken vor, darunter die mögliche Nichterfüllung einer verbindlichen Vereinbarung, unzureichende Finanzierung, regulatorische Hürden und Herausforderungen bei der Erlangung notwendiger Dienstbarkeiten und Grundstücksrechte.
- Agreement in principle to increase power capacity from 30MW to 300MW
- Partnership with experienced advisor Northland Capital Markets ($6B in recent transactions)
- Substantial facility size of 34.5 acres offering expansion potential
- Power upgrade project subject to multiple risks including funding uncertainty
- Requires additional regulatory approvals and land rights
- No definitive agreement yet secured for power capacity increase
Insights
The engagement of Northland Capital Markets signals a pivotal moment in Hyperscale Data's strategic evolution. The Michigan Facility's planned power capacity expansion from 30MW to 300MW represents a 10x increase in potential computing capacity, positioning it as a significant player in the high-performance computing (HPC) market.
The strategic value proposition is particularly compelling given two key factors: First, the facility's 34.5-acre footprint provides ample room for physical expansion, a important advantage in an industry where scale drives economics. Second, the preliminary utility agreement for power expansion addresses one of the most critical barriers to entry in data center development - securing reliable, high-capacity power infrastructure.
Northland's recent track record of advising on $6 billion in data center transactions, particularly in transitioning bitcoin mining facilities to HPC operations, is especially relevant. This expertise could be instrumental in positioning the Michigan Facility for the growing demand in AI and machine learning workloads, which require similar power density and cooling infrastructure as crypto mining operations but offer more stable, enterprise-grade revenue streams.
The strategic review process could yield several outcomes:
- Joint venture partnerships with established data center operators seeking rapid market entry
- Sale-leaseback arrangements to unlock capital for expansion while maintaining operational control
- Debt financing leveraging the facility's power agreements and infrastructure assets
- Equity investment from infrastructure funds or strategic investors focused on digital infrastructure
However, investors should note significant execution risks, including the need for substantial capital investment for power infrastructure upgrades, potential regulatory hurdles in securing final power agreements, and the competitive dynamics in the rapidly evolving data center market. The success of this strategic initiative will largely depend on the company's ability to navigate these challenges while capitalizing on the growing demand for high-performance computing infrastructure.
LAS VEGAS, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced that it has engaged Northland Capital Markets (“Northland”) to assist in evaluating strategic alternatives for its Michigan Data Center (“Michigan Facility”). This engagement underscores the Company’s commitment to unlocking value for stockholders as it explores various pathways, including raising debt or equity for expansion, or forming joint ventures.
Northland brings extensive expertise in the data center sector, having successfully advised on over
William B. Horne, CEO of Hyperscale Data, commented, “We are excited to partner with Northland, a highly respected investment bank with deep industry expertise. We are confident in its ability to help us evaluate and execute the best path forward for our Michigan Facility, which sits on 34.5 acres and currently has approximately 30 megawatts of available power and has reached an agreement in principle with the local utility enabling Alliance Cloud Services, LLC, an indirectly wholly owned subsidiary of the Company, to increase its power capacity to approximately 300 megawatts. As we continue our transition into a pure-play data center business, we are considering all strategic options to maximize stockholder value—whether through development, monetization, or strategic partnerships. We look forward to exploring multiple opportunities that align with our long-term growth strategy.”
Hyperscale Data will provide further updates as the process advances.
The completion of the power upgrade is subject to a number of risks and uncertainties, one or more which could result in the project being terminated, including, but not limited to: failure to agree upon terms and execute a definitive agreement; the inability of the Company to raise sufficient funds to pay for the power upgrades; failure to obtain regulatory consents and approvals; the inability to obtain sufficient easements, rights-of-way and land rights necessary to the work to be performed, and other presently unforeseen events or conditions.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.
About Hyperscale Data, Inc.
Hyperscale Data is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high-performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.hyperscaledata.com.
Hyperscale Data Investor Contact:
IR@hyperscaledata.com or 1-888-753-2235
FAQ
What is the current power capacity of GPUS's Michigan Data Center?
How much will GPUS's Michigan facility power capacity increase to?
What strategic options is GPUS exploring for its Michigan Data Center?
How much transaction experience does Northland Capital Markets have in data centers?
What is the size of GPUS's Michigan Data Center property?
