Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence data center company, announced on October 28, 2026, that Alliance Cloud Services, LLC (ACS), an indirect wholly owned subsidiary, has engaged Newmark Group, Inc. to identify prospective lenders to provide non-dilutive long-term debt financing for the development and expansion of the company's AI data center campus in Michigan.

Engagement Aims to Shift Funding Away from Equity Issuances

The engagement is intended to support the company's strategy to fund the Michigan Campus on an institutional basis and reduce reliance on issuances of its common equity.

Executive Chairman Milton "Todd" Ault III said hiring Newmark is an important step toward financing the Michigan Campus on an institutional, long-term basis. According to Ault, successfully securing the debt financing being pursued would, once consummated, substantially reduce the company's need to raise additional equity capital for the project.

"We believe Newmark's significant experience and expertise can help us pursue a financing structure that reflects the scale of the Michigan campus and its anticipated revenue profile," Ault said, adding that the company's objective is to fund development responsibly while preserving more of the project's long-term value for stockholders.

Newmark's Data Center Financing Track Record

Newmark is a commercial real estate advisor and service provider with a dedicated data center and digital infrastructure capital markets practice.

Its publicly announced data center assignments include arranging a USD 7.1 billion construction loan in 2025 for an AI data center project in Abilene, Texas, and arranging USD 975 million in financing in 2026 for a newly constructed data center in Northern Virginia. More broadly, Newmark arranged approximately USD 59 billion in investments and an additional USD 73 billion in debt placements during 2025.

Hyperscale Data stated that it believes Newmark's specialized experience in data center financing will be valuable in presenting the Michigan Campus to prospective lenders and in evaluating financing alternatives that address the project's requirements.

Financing Objectives and Evaluation Criteria

The company's financing objective is to secure debt capital suited to the Michigan Campus' development requirements and anticipated operating cash flows. The process is intended to evaluate the availability of long-term funding, potential borrowing structures, and repayment schedules appropriate for the campus's expected progression from construction and commissioning into revenue-generating operations.

Management believes that obtaining suitable institutional debt financing could improve the company's ability to plan capital expenditures across successive development stages.

The company will evaluate potential financing based on its overall economic terms, including interest expense, repayment obligations, collateral requirements, and covenants, as well as other terms or conditions that lenders may require.

Chief Executive Officer William Horne said long-term debt financing arranged with Newmark's assistance would reduce reliance on outside equity and provide a stronger financial foundation for building and operating the Michigan Campus over the long term.

"We are interested in financing that supports the infrastructure needed for customer deployments and gives us a clear framework for funding the project as it develops," Horne stated.

He said the company's focus is on securing appropriate terms, managing the cost of capital, and limiting dilution while maintaining the financial flexibility needed to execute.

Michigan Campus Backed by 10-Year Customer Agreement

The Michigan Campus is operated by ACS. As previously announced, ACS entered into a master services agreement with a California-based neocloud provider for colocation and related data center services supporting an initial 20 megawatts (MW) of critical AI compute capacity.

The agreement has an initial term of 10 years, with two five-year extension options exercisable by the customer. It also provides the customer with a right of first offer for an additional 32 MW, if available, which could bring its total deployment to 52 MW of critical AI compute capacity. Additional capacity and extension periods remain subject to the applicable contractual provisions and development requirements.

As previously disclosed, the company expects the first 10 MW of critical AI compute capacity at the Michigan Campus to be energized in December 2026, with revenue-generating activities expected to begin in connection with that milestone. Achieving that timetable remains subject to completion of the necessary infrastructure and commissioning activities.

No Assurance Financing Will Be Secured

The company emphasized that the engagement of Newmark does not constitute a commitment to lend or confirmation that financing has been secured. Any financing will be subject to lender underwriting, due diligence, definitive agreements, and applicable closing conditions.

The amount, pricing, maturity, and other terms of any financing have not been announced. Hyperscale Data cautioned that there can be no assurance financing will be obtained on terms acceptable to the company, or at all, or that it will eliminate the need for additional equity capital.

Hyperscale Data, through its wholly owned subsidiary Sentinum, Inc., owns and operates a data center offering colocation and hosting services for emerging AI ecosystems and other industries. Another wholly owned subsidiary, Ault Capital Group, Inc., is a hybrid private equity firm and operating company.

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