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Hyperscale Data Subsidiary Reaches Agreement in Principle to Add Capability for an Incremental 40 Megawatts to its Michigan Data Center, Boosting AI Infrastructure Development
Globe Newswire 27-Feb-2025 6:30 AM
LAS VEGAS, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE:GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today announced that its indirectly wholly owned subsidiary Alliance Cloud Services, LLC ("ACS") has reached an agreement in principle with the local natural gas utility to provide the capability to energize ACS' Michigan data center (the "Data Center"), with an additional 40 megawatts ("MW"). This would enable ACS to increase its power capacity from approximately 30 MW to approximately 340 MW. This announcement follows the Company's recent announcement detailing ACS' ability to expand the Data Center to 300 MW. The project is expected to be completed within 18 months of the execution of definitive agreements.
As the Company recently stated, the expansion of the Data Center to 300 MW is a crucial long-term goal for ACS, enabling ACS to better serve the rapidly growing demand for high-performance computing ("HPC") services powering artificial intelligence ("AI") infrastructure. The Company notes that the incremental 40 MW of power would be delivered significantly sooner than the previously announced power upgrade. This is due, in part, to the difference in power supply, as the approximately 300 MW increase would be coming from grid utility sources, including nuclear power, while the approximately 40 MW would be coming from natural gas delivered to the Data Center. The Company is working through multiple approaches that could utilize the natural gas supply and provide incremental power to the Data Center while the larger power upgrade project is under way. Additionally, the Company is exploring options that could potentially provide a further incremental capability to energize another approximately 85 MW. 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.
William B. Horne, Chief Executive Officer of Hyperscale Data, commented, "We are excited to take another step in the right direction for the Company's long-term goal of becoming a pureplay data center business. The use of alternative power sources will be critical in ACS' plans to bring incremental power to the Data Center and serve the growing AI data center industry."
The completion of the power upgrades is subject to a number of risks and uncertainties, one or more which could result in the project being curtailed, delayed or terminated, including, but not limited to: failure to agree upon terms and execute definitive agreements; the inability of 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.
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.
Through its wholly owned subsidiaries, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data's subsidiary, Ault Capital Group, Inc. ("ACG"), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.
Hyperscale Data intends to completely divest itself of ACG on or about December 31, 2025, at which time it would be solely an owner and operator of data centers to support HPC services. Until then, however, the Company provides, through ACG and its wholly and majority-owned subsidiaries and strategic investments, 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, ACG 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.
