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Hyperscale Data Subsidiary, Alliance Cloud Services, Signs Multi-Year Agreement in Support of an Artificial Intelligence Implementation Within its Michigan Data Center

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Hyperscale Data's subsidiary, Alliance Cloud Services, has secured a three-year agreement with a Silicon Valley cloud services provider for its Michigan Data Center. The deal includes seven server cabinets initially, with the option to add five more. Each cabinet will utilize approximately 40 kilowatts of power, with cooling systems capable of handling double that capacity.

While this implementation uses only a small portion of the 100,000 sq.ft. facility and its 28 MW power capacity, it demonstrates the high-density power and cooling solutions needed for modern computing. The company aims to expand its data center operations to 300+ MW of power over the next four years as part of its transition to becoming a pure-play data center company.

La sussidiaria di Hyperscale Data, Alliance Cloud Services, ha ottenuto un accordo triennale con un fornitore di servizi cloud della Silicon Valley per il suo Data Center in Michigan. L'accordo prevede sette armadi server inizialmente, con l'opzione di aggiungere altri cinque. Ogni armadio utilizzerà circa 40 kilowatt di potenza, con sistemi di raffreddamento in grado di gestire il doppio di quella capacità.

Sebbene questa implementazione utilizzi solo una piccola parte della struttura di 100.000 piedi quadrati e della sua capacità di 28 MW, essa dimostra le soluzioni di potenza e raffreddamento ad alta densità necessarie per il computing moderno. L'azienda mira ad espandere le sue operazioni di data center a 300+ MW di potenza nei prossimi quattro anni come parte della sua transizione a diventare un'azienda dedicata esclusivamente ai data center.

La filial de Hyperscale Data, Alliance Cloud Services, ha conseguido un acuerdo de tres años con un proveedor de servicios en la nube de Silicon Valley para su Centro de Datos en Michigan. El acuerdo incluye siete gabinetes de servidores inicialmente, con la opción de agregar cinco más. Cada gabinete utilizará aproximadamente 40 kilovatios de potencia, con sistemas de refrigeración capaces de manejar el doble de esa capacidad.

Aunque esta implementación utiliza solo una pequeña parte de la instalación de 100,000 pies cuadrados y su capacidad de 28 MW, demuestra las soluciones de potencia y refrigeración de alta densidad necesarias para la informática moderna. La empresa tiene como objetivo expandir sus operaciones de centros de datos a 300+ MW de potencia en los próximos cuatro años como parte de su transición para convertirse en una empresa puramente dedicada a los centros de datos.

하이퍼스케일 데이터의 자회사인 Alliance Cloud Services는 미시간 데이터 센터를 위해 실리콘밸리 클라우드 서비스 제공업체와 3년 계약을 체결했습니다. 이번 계약에는 처음에 7개의 서버 캐비닛이 포함되며, 5개 추가 옵션도 있습니다. 각 캐비닛은 약 40킬로와트의 전력을 사용할 것이며, 냉각 시스템은 그 용량의 두 배를 처리할 수 있습니다.

이 구현은 10만 평방피트 시설의 작은 부분과 28MW의 전력 용량만 사용하지만, 현대 컴퓨팅에 필요한 높은 밀도의 전력 및 냉각 솔루션을 보여줍니다. 회사는 순수 데이터 센터 회사로 전환하는 과정의 일환으로 향후 4년 동안 전력 용량을 300+ MW로 확장하는 것을 목표로 하고 있습니다.

La filiale de Hyperscale Data, Alliance Cloud Services, a sécurisé un contrat de trois ans avec un fournisseur de services cloud de la Silicon Valley pour son centre de données du Michigan. L'accord inclut initialement sept armoires serveur, avec la possibilité d'en ajouter cinq supplémentaires. Chaque armoire utilisera environ 40 kilowatts de puissance, les systèmes de refroidissement étant capables de gérer le double de cette capacité.

Bien que cette mise en œuvre utilise seulement une petite partie de l'installation de 100 000 pieds carrés et de sa capacité de 28 MW, elle démontre les solutions de puissance et de refroidissement à haute densité nécessaires pour l'informatique moderne. L'entreprise vise à étendre ses opérations de centre de données à 300+ MW de puissance au cours des quatre prochaines années dans le cadre de sa transition pour devenir une entreprise exclusivement dédiée aux centres de données.

Die Tochtergesellschaft von Hyperscale Data, Alliance Cloud Services, hat einen Dreijahresvertrag mit einem Cloud-Service-Anbieter aus dem Silicon Valley für ihr Rechenzentrum in Michigan gesichert. Der Vertrag umfasst zunächst sieben Server-Racks mit der Option, fünf weitere hinzuzufügen. Jede Rack wird etwa 40 Kilowatt Leistung verwenden, wobei die Kühlsysteme in der Lage sind, die doppelte Kapazität zu bewältigen.

Obwohl diese Implementierung nur einen kleinen Teil der 100.000 Quadratfuß großen Anlage und ihrer 28 MW Leistungskapazität nutzt, zeigt sie die Lösungen für hohe Dichte von Strom und Kühlung, die für modernes Computing erforderlich sind. Das Unternehmen beabsichtigt, seine Rechenzentrumsoperationen in den nächsten vier Jahren auf 300+ MW Leistung auszudehnen, im Rahmen seiner Umstellung auf ein reines Rechenzentrumsunternehmen.

Positive
  • Secured three-year agreement with Silicon Valley cloud services provider
  • Infrastructure demonstrates capability to handle high-density computing requirements
  • Strategic expansion plan to reach 300+ MW power capacity in 4 years
  • Facility has significant room for growth with 28 MW current capacity
Negative
  • Current implementation utilizes only small portion of available capacity
  • Significant capital investment likely needed to reach 300+ MW target

Insights

The signing of this three-year agreement marks a strategic expansion in the data center sector, particularly in high-density computing infrastructure. The initial deployment of 7 cabinets at 40kW per cabinet, with potential for 5 more, represents a total power commitment of approximately 280kW, scalable to 480kW. The facility's ability to handle twice the initial power density per cabinet demonstrates forward-thinking infrastructure planning. The company's ambitious goal to scale to 300+ MW of power capacity within four years signals a significant market opportunity in the rapidly growing AI infrastructure space.

For context, a typical enterprise data center cabinet usually operates at 5-10kW, making this deployment's 40kW per cabinet particularly notable for AI workloads. The Michigan location offers strategic advantages in terms of power costs and environmental cooling efficiency. The agreement's structure allows for flexible scaling, which is important for AI infrastructure deployments that often require rapid expansion capabilities.

This deal represents a significant validation of Hyperscale Data's technical capabilities in supporting advanced AI computing requirements. The high power density specifications of 40kW per cabinet, with cooling systems capable of handling 80kW, align perfectly with the demands of large language model training and inference workloads.

The Silicon Valley cloud provider's choice of Michigan for AI infrastructure deployment suggests a strategic focus on optimizing operating costs while maintaining high-performance capabilities. The facility's 28 MW of available power capacity provides ample headroom for future AI workload expansion. This agreement positions Hyperscale Data favorably in the competitive AI infrastructure market, where power density and cooling efficiency are important differentiators. The transition toward becoming a pure-play data center company could significantly enhance shareholder value, given the premium valuations currently commanded by AI-ready data center operators.

This agreement represents a strategic pivot that could substantially impact Hyperscale Data's financial trajectory. While specific revenue figures aren't disclosed, high-density AI computing deployments typically command premium pricing compared to traditional colocation services. Based on current market rates, this initial deployment could generate annual recurring revenue in the $1.5-2.5 million range, with potential upside from the additional cabinet options.

The company's ambitious plan to scale to 300+ MW represents a potential market opportunity of $500+ million in annual revenue at full deployment, assuming industry-standard pricing metrics. For a company with a market cap of $5.6 billion, this transformation into a pure-play data center operator focused on AI infrastructure could lead to multiple expansion, as comparable companies in this space often trade at higher valuations due to the strategic nature of their assets and strong recurring revenue profiles.

LAS VEGAS, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced that its wholly owned subsidiary, Alliance Cloud Services, LLC (“Alliance Cloud”) has signed a three year agreement, for space, power and connectivity within Alliance Cloud’s Michigan Data Center to a Silicon Valley based cloud services provider. The implementation includes an initial seven (7) server cabinets with capability to add an additional five (5) server cabinets. The server cabinets will start out using approximately 40 kilowatts per cabinet with cabinet level cooling capable of handling twice that density. While only utilizing a small portion of the 100,000 sq.ft. data center and a small portion of the data center’s 28 megawatts (“MW”) of available power capacity, the infrastructure being implemented is illustrative of the high-density power and cooling solutions required to support today’s sophisticated computing requirements.

“The Company is very proud of the progress made by Alliance Cloud and the operating team in Michigan. Moreover, the signing of this agreement is an important milestone in both the development of our data center business, which we expect to develop to 300+ MW of power over the next four years, and a crucial element in our transition to making the Company a pure-play in the data center space,” stated William Horne, CEO of Hyperscale Data.

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 power capacity of GPUS's Michigan Data Center agreement?

The initial agreement includes seven server cabinets using approximately 40 kilowatts per cabinet, with cooling systems capable of handling up to 80 kilowatts per cabinet.

What is Hyperscale Data's (GPUS) expansion target for data center power capacity?

Hyperscale Data aims to develop its data center power capacity to over 300 megawatts within the next four years.

How large is GPUS's Michigan Data Center facility?

The Michigan Data Center facility is 100,000 square feet with 28 megawatts of available power capacity.

What is the duration of GPUS's new cloud services agreement?

The agreement is a three-year contract with a Silicon Valley-based cloud services provider.

How many additional server cabinets can be added to the initial GPUS agreement?

The agreement allows for the addition of five server cabinets beyond the initial seven cabinets.

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