Hyperscale Data Secures 20MW Neocloud Deal at Michigan Campus, Potential to Scale to 52MW
June 24, 2026
Hyperscale Data Secures 20MW Neocloud Deal at Michigan Campus, Potential to Scale to 52MW
Hyperscale Data, through its subsidiary Alliance Cloud Services (ACS), has signed a capacity agreement with an undisclosed California-based neocloud provider for 20 megawatts of compute capacity at its Michigan data center campus. The deal marks a strategic shift for the facility, which has historically been dominated by Bitcoin mining operations.
The initial 20MW deployment is expected to become operational in the fourth quarter of 2026, with a potential expansion to up to 52MW of compute capacity. The contract carries an initial term of ten years, with two five-year extension options. If the agreement runs to its maximum term, it is valued at approximately $1.2 billion; scaling to 52MW could push the total deal value to $3 billion.
ACS is currently procuring key electrical and infrastructure equipment for the campus and retrofitting 60,000 square feet (5,575 square meters) of space to accommodate the unnamed customer’s deployment. The retrofit is expected to cost between $100 million and $120 million. The Michigan facility, located at 415 East Prairie Ronde Street in Dowagiac, spans 617,000 square feet (57,320 square meters) and was originally built in 1972 as a manufacturing space. Hyperscale Data acquired the site in May 2022 and began repurposing it for high-performance computing and colocation in early 2025.
“I am pleased by the progress that we have made as we continue the evolution of our Michigan campus from a Bitcoin mining-focused facility into a next-generation AI and high-performance computing campus,” said William B. Horne, CEO of Hyperscale Data. “We believe our Michigan Campus is positioned to offer a top-tier AI compute environment, and these Services are expected to begin generating material, high-margin revenue upon deployment, which may begin as soon as late September 2026.”
The company currently operates approximately 28MW of Bitcoin mining capacity at the site but plans to reallocate power to AI workloads as the neocloud deployment comes online. Hyperscale Data may continue some mining operations alongside the new compute services. The broader expansion plan aims to grow the campus from its current 30MW of capacity to 340MW, including 40MW of behind-the-meter natural gas capacity.
“The signing of an MSA represents a significant milestone for the Company,” said Milton Ault III, executive chairman of Hyperscale Data. “We currently operate approximately 28MW of Bitcoin mining capacity at the Michigan Campus. As the customer’s deployments are brought online, we expect to allocate an increasing portion of the Michigan campus to AI and high-performance computing workloads. We believe this strategy positions us to maximize the long-term value of the Michigan Campus as we work toward developing more than 300MW of total power capacity.”
The deal underscores a broader industry trend of repurposing legacy industrial and cryptocurrency mining sites for AI and cloud infrastructure, as demand for high-performance compute capacity continues to outpace supply. Hyperscale Data’s pivot to AI and HPC reflects the growing need for scalable, energy-intensive data center environments tailored to next-generation workloads.
Source: datacenterdynamics
