Hyperscale Data Subsidiary Reaches Agreement in Principle with Key Utility to Expand Michigan Data Center to 300 Megawatts, which Would Allow the Company to Advance its AI Infrastructure Growth
Hyperscale Data (NYSE: GPUS) announced that its subsidiary Alliance Cloud Services (ACS) has reached an agreement in principle with a local utility to increase its Michigan data center power capacity from 30 megawatts (MW) to 300 MW. The power upgrade completion is expected to take 44 months from the execution of a formal Letter of Authorization (LOA), which is currently under negotiation.
The company is transitioning its existing 30MW capacity from Bitcoin mining to High-Performance Computing (HPC) services supporting AI infrastructure. The expansion aims to meet growing demand for AI and HPC services, marking a significant step in the company's transformation into a pure-play data center operator.
The project completion is subject to various risks, including failure to execute a definitive agreement, insufficient funding, regulatory approval issues, and inability to obtain necessary easements and land rights.
Hyperscale Data (NYSE: GPUS) ha annunciato che la sua sussidiaria Alliance Cloud Services (ACS) ha raggiunto un accordo di principio con una utility locale per aumentare la capacità energetica del suo data center in Michigan da 30 megawatt (MW) a 300 MW. Si prevede che il completamento dell'aggiornamento energetico richiederà 44 mesi dall'esecuzione di una formale Lettera di Autorizzazione (LOA), attualmente in fase di negoziazione.
L'azienda sta trasformando la sua capacità esistente di 30MW dal mining di Bitcoin ai servizi di High-Performance Computing (HPC) a supporto dell'infrastruttura AI. L'espansione mira a soddisfare la crescente domanda di servizi AI e HPC, segnando un passo significativo nella trasformazione dell'azienda in un operatore di data center esclusivo.
Il completamento del progetto è soggetto a vari rischi, tra cui il fallimento nell'esecuzione di un accordo definitivo, finanziamenti insufficienti, problemi di approvazione normativa e impossibilità di ottenere le necessarie servitù e diritti fondiari.
Hyperscale Data (NYSE: GPUS) anunció que su subsidiaria Alliance Cloud Services (ACS) ha llegado a un acuerdo de principio con una empresa de servicios públicos local para aumentar la capacidad de energía de su centro de datos en Michigan de 30 megavatios (MW) a 300 MW. Se espera que la finalización de la actualización energética tome 44 meses a partir de la ejecución de una Carta de Autorización (LOA) formal, que actualmente está en negociación.
La empresa está transfiriendo su capacidad existente de 30MW de la minería de Bitcoin a servicios de Computación de Alto Rendimiento (HPC) que apoyan la infraestructura de IA. La expansión tiene como objetivo satisfacer la creciente demanda de servicios de IA y HPC, marcando un paso significativo en la transformación de la empresa en un operador de centro de datos dedicado.
La finalización del proyecto está sujeta a varios riesgos, incluidos el fracaso en la ejecución de un acuerdo definitivo, la falta de financiación, problemas de aprobación regulatoria y la incapacidad para obtener las servidumbres y derechos de tierra necesarios.
하이퍼스케일 데이터 (NYSE: GPUS)는 자회사인 Alliance Cloud Services (ACS)가 미시간 데이터 센터의 전력 용량을 30메가와트(MW)에서 300MW로 늘리기 위해 지역 유틸리티와 원칙적으로 합의에 도달했다고 발표했습니다. 전력 업그레이드 완료는 현재 협상 중인 공식 승인서(LOA)의 실행 후 44개월이 소요될 것으로 예상됩니다.
회사는 기존의 30MW 용량을 비트코인 채굴에서 AI 인프라를 지원하는 고성능 컴퓨팅(HPC) 서비스로 전환하고 있습니다. 이 확장은 AI 및 HPC 서비스에 대한 증가하는 수요를 충족하는 것을 목표로 하며, 회사가 순수 데이터 센터 운영자로 변모하는 데 중요한 단계를 의미합니다.
프로젝트 완료는 최종 계약 체결 실패, 자금 부족, 규제 승인 문제, 필요한 용지 및 토지 권리 확보 실패 등 여러 위험에 따라 달라집니다.
Hyperscale Data (NYSE: GPUS) a annoncé que sa filiale Alliance Cloud Services (ACS) a conclu un accord de principe avec une entreprise de services publics locale pour augmenter la capacité électrique de son centre de données du Michigan de 30 mégawatts (MW) à 300 MW. L'achèvement de la mise à niveau énergétique devrait prendre 44 mois à partir de l'exécution d'une lettre d'autorisation formelle (LOA), qui est actuellement en négociation.
L'entreprise est en train de transférer sa capacité existante de 30 MW de l'exploitation minière de Bitcoin vers des services de calcul haute performance (HPC) soutenant l'infrastructure d'IA. L'expansion vise à répondre à la demande croissante de services d'IA et de HPC, marquant une étape significative dans la transformation de l'entreprise en un opérateur de centre de données dédié.
La réalisation du projet est soumise à divers risques, y compris l'échec de l'exécution d'un accord définitif, un financement insuffisant, des problèmes d'approbation réglementaire et l'incapacité d'obtenir les servitudes et droits fonciers nécessaires.
Hyperscale Data (NYSE: GPUS) hat angekündigt, dass seine Tochtergesellschaft Alliance Cloud Services (ACS) eine grundsätzliche Vereinbarung mit einem lokalen Versorgungsunternehmen getroffen hat, um die Energiekapazität seines Rechenzentrums in Michigan von 30 Megawatt (MW) auf 300 MW zu erhöhen. Der Abschluss des Energie-Upgrade wird voraussichtlich 44 Monate nach der Ausführung eines formellen Genehmigungsschreibens (LOA) in Anspruch nehmen, das derzeit in Verhandlung ist.
Das Unternehmen wandelt seine bestehende Kapazität von 30MW vom Bitcoin-Mining zu Hochleistungsrechnungsdiensten (HPC), die die KI-Infrastruktur unterstützen. Die Erweiterung zielt darauf ab, der wachsenden Nachfrage nach KI- und HPC-Diensten gerecht zu werden und stellt einen bedeutenden Schritt in der Transformation des Unternehmens zu einem reinen Rechenzentrumsbetreiber dar.
Der Abschluss des Projekts unterliegt verschiedenen Risiken, einschließlich des Scheiterns bei der Ausführung einer endgültigen Vereinbarung, unzureichender Finanzierung, Problemen mit der regulatorischen Genehmigung und der Unfähigkeit, notwendige Dienstbarkeiten und Grundstücksrechte zu erhalten.
- Planned expansion from 30MW to 300MW power capacity, significantly increasing operational capabilities
- Strategic transition from Bitcoin mining to higher-value AI/HPC services
- Agreement in principle reached with utility provider, advancing expansion plans
- 44-month timeline for power upgrade completion indicates long wait for revenue impact
- Project subject to multiple execution risks including funding requirements and regulatory approvals
- Current operations to 30MW capacity during transition period
Insights
The planned expansion from 30MW to 300MW represents a tenfold increase in power capacity, positioning Hyperscale Data to become a significant player in the AI infrastructure space. To put this in perspective, 300MW is equivalent to powering approximately 225,000 homes and places this facility among the larger data centers in North America. The strategic pivot from Bitcoin mining to High-Performance Computing services aligns with the explosive growth in AI infrastructure demand, where power density and cooling capabilities are critical differentiators.
The 44-month timeline for full implementation suggests a phased approach to power deployment, with the company actively seeking interim solutions for incremental capacity increases. This gradual scaling strategy could help mitigate initial capital requirements while allowing for revenue generation during the transition period. However, the execution risks are substantial, particularly regarding financing requirements for power infrastructure upgrades, which typically cost
Several critical factors warrant investor attention:
- The transition from crypto mining to HPC services requires significant technical expertise and infrastructure modifications, including enhanced cooling systems and network architecture.
- The agreement in principle, while promising, still requires formal documentation and multiple regulatory approvals.
- The company's ability to secure sufficient funding for the expansion will be crucial, as power infrastructure upgrades of this magnitude typically require substantial capital investment.
- The competitive landscape in AI infrastructure is intensifying, with major tech companies and data center REITs also expanding their capabilities.
The timing of this expansion aligns with the broader industry trend of rapid AI infrastructure buildout, though the extended timeline to full capacity means Hyperscale Data will need to execute flawlessly to capitalize on current market opportunities. The company's ability to secure customer commitments during the transition period will be important for validating their strategic pivot.
LAS VEGAS, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced that its indirect, wholly owned subsidiary Alliance Cloud Services, LLC (“ACS”) has reached an agreement in principle with the local utility expected to energize ACS’ Michigan data center (the “Data Center”), enabling ACS to increase its power capacity from approximately 30 megawatts (“MW”) to 300 MW. The completion of the power upgrade is anticipated to take 44 months from execution of a formal Letter of Authorization (the “LOA”) between ACS and the utility, which is currently being negotiated.
The expansion of the Data Center to 300 MW will be a critical long-term milestone, which would enable ACS to increase its expansion efforts and further support the rapidly growing demand for high-performance computing (“HPC”) services powering artificial intelligence (“AI”) infrastructure. Hyperscale Data is simultaneously proceeding with the transition of the Data Center’s existing power capacity of 30MW from that of self-mining of Bitcoin to HPC services. As a part of negotiating the LOA, Hyperscale Data anticipates discussing potential approaches that could provide incremental power while the full buildout project is underway. Hyperscale Data is currently in the process of deploying the network, electrical and cooling systems for its first HPC environment. As Hyperscale Data moves forward in the coming months with both its short-term transition to HPC services and its power upgrade expansion process it will provide ongoing updates to its stockholders and the public as developments warrant.
Milton “Todd” Ault III, Executive Chairman of Hyperscale Data, commented, “We are pleased to have finally reached an agreement in principle with the local utility and look forward to executing a definitive agreement with it. This would be a game-changer for our business and the future of our AI infrastructure. Scaling our Data Center to 300 MW would significantly enhance our ability to meet surging demand from AI and high-performance computing customers. It also marks a major step forward in our transformation into a pure-play data center operator. We are committed to building a world-class facility that powers the next generation of technology, and this anticipated expansion is a significant step forward to meeting that objective.”
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 ACS or 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.
Additional information regarding the material terms of the LOA will be included in a Current Report on Form 8-K to be filed with the United States Securities and Exchange Commission (“SEC”).
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
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