The capital is directed toward a master services agreement signed by subsidiary Alliance Cloud Services with an unnamed California-based neocloud provider. The contract covers an initial 20 megawatts of AI compute capacity, with deployment targeted for the fourth quarter of 2026. The agreement runs for ten years with two five-year extension options; if fully extended, it is expected to generate more than $1.2 billion in revenue. The customer also holds a right to an additional 32 MW, which could push total contract revenue above $3.0 billion if exercised within the first two years and extended through the maximum term.
Retrofitting 60,000 square feet at the Michigan campus for the customer is projected to cost between $100 million and $120 million. The campus, a 617,000-square-foot facility acquired in 2022, has primarily hosted bitcoin mining. Power will be reallocated to AI workloads as they come online, though some mining may continue.
Hyperscale Data has also expanded its physical footprint. In late June, it completed the purchase of 48.5 acres of adjacent land, more than doubling its campus to 83 acres. The company said it will publish monthly progress reports starting in July 2026.