Hyperscale Data, Inc. has invested more than $70 million into Alliance Cloud Services and the development of its Michigan AI data center as of September 15, 2026, with the company targeting November 2026 to begin generating revenue and cash flow under a previously announced master services agreement with a California-based neocloud provider.

Investment Milestone and Facility Progress

The Las Vegas-headquartered company, which trades on NYSE American under the ticker GPUS, disclosed the investment figure in a September 17, 2026 update on the continued development of the Michigan facility. Alliance Cloud Services, LLC, the entity operating the Michigan data center, is an indirect wholly owned subsidiary of Hyperscale Data. The company stated that the more than $70 million invested to date represents a substantial portion of the overall capital program required to prepare the Michigan facility for the deployment of AI compute capacity.

As part of that investment and development program, Hyperscale Data said it has acquired a substantial amount of the equipment required to bring the contracted capacity online at the facility. Will Horne, Chief Executive Officer of Hyperscale Data, described the investment as being focused on operational execution.

"This capital is part of the overall investment required to prepare the facility for our neocloud customer under the MSA, and we have now acquired a substantial amount of the equipment required for the planned deployment," Horne said in the company's release. "We are working toward bringing the initial contracted capacity online beginning in November, when we expect to start generating revenue and cash flow under an agreement that could generate more than $3.0 billion in revenue over a 20-year term."

Master Services Agreement Terms and Revenue Projections

The master services agreement at the center of the Michigan facility's commercial launch covers an initial 20 megawatts of critical AI compute capacity and carries an initial 10-year term with two five-year extension options. Should the agreement run its full potential 20-year course, Hyperscale Data expects it to generate more than approximately $1.2 billion in revenue.

The neocloud customer identified in the MSA also holds the contractual right to increase critical AI compute capacity up to a total of 52 megawatts. If that expansion option is fully exercised and the agreement is maintained for the entire 20-year term, Hyperscale Data expects total contract revenue to exceed $3.0 billion. The company noted that a full 52-megawatt deployment by the existing customer would represent less than 20 percent of the Michigan facility's approximately 340 megawatts of total potential capacity.

Even following a complete 52-megawatt buildout for the current customer, the company said approximately 270 megawatts of potential additional capacity would remain available for future development and additional customer deployments, subject to obtaining required power, infrastructure, financing and regulatory approvals.

Long-Term Strategic Options Under Consideration

Hyperscale Data said it continues to evaluate what it described as the optimal long-term strategy for Alliance Cloud Services and the Michigan facility. The options under consideration include continued development of the campus, strategic partnerships, additional customer deployments, a potential separation or initial public offering of Alliance Cloud Services, or a potential sale of the Michigan facility if the company determines such a transaction would maximize stockholder value.

Horne said the company's immediate priority remains getting its existing customer online and executing the initial deployment before turning attention to expanding the campus. "Our immediate priority is getting our customer online, generating cash flow and successfully executing the initial deployment," Horne stated. "From there, we intend to continue developing the campus and pursuing the significant amount of potential capacity that remains."

Company Structure and Upcoming Divestiture

Hyperscale Data describes itself as an artificial intelligence data center company anchored by Bitcoin. Through its wholly owned subsidiary Sentinum, Inc., the company owns and operates a data center offering colocation and hosting services. Another wholly owned subsidiary, Ault Capital Group, Inc., operates as a hybrid private equity firm and operating company with investments across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors. The company currently expects to divest Ault Capital Group in 2027.

Following that divestiture, Hyperscale Data said it would operate as an owner and operator of data centers to support high-performance computing services, as well as a holder of digital assets and a third wholly owned subsidiary, Omnipresent Robotics, LLC. Until the divestiture occurs, the company said it will continue to provide, through Ault Capital Group and its subsidiaries and strategic investments, mission-critical products across industries including an AI software platform, equipment rental services, defense and aerospace, industrial operations, automotive and hotel operations.

Ault Capital Group is also engaged in private credit and structured finance through Ault Lending, LLC, a licensed lending subsidiary. Hyperscale Data said it expects to provide additional updates as material developments and deployment milestones are achieved at the Michigan facility.

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