en.Wedoany.com Reported - Hyperscale Data, through its subsidiary Alliance Cloud Services (ACS), has signed a contract to provide 20MW of computing capacity to an unnamed California-based Neocloud customer at its Michigan campus.

The 20MW of computing capacity under the agreement is scheduled to be deployed and operational in the fourth quarter of 2026, with the customer having the option to expand the capacity to 52MW thereafter.

The identity of the Neocloud customer has not yet been disclosed. The initial contract term is ten years, with two five-year renewal options. If executed to the maximum term, the transaction is valued at approximately $1.2 billion; if the customer expands the capacity to 52MW, the total transaction value could reach $3 billion.

ACS is procuring critical electrical and infrastructure equipment for the data center campus and is undertaking the renovation of 60,000 square feet (5,575 square meters) of space on the site for customer deployment, a process expected to cost between $100 million and $120 million.

The Michigan campus is currently primarily used for Bitcoin mining, but as deployment progresses, the company will reallocate power to AI computing. Hyperscale Data stated that it may retain some mining operations at the Michigan site.

William B. Horne, CEO of Hyperscale Data, expressed satisfaction with the progress of transforming the Michigan campus from a Bitcoin mining-focused facility into a next-generation AI and high-performance computing campus. He believes the campus can provide a top-tier AI computing environment, with related services expected to begin generating high-margin revenue as early as late September 2026 after deployment.

Located at 415 East Prairie Ronde Street in Dowagiac, Michigan, the data center spans 617,000 square feet (57,320 square meters) and was originally built in 1972 for manufacturing use. Hyperscale Data completed its acquisition in May 2022 and began converting it for high-performance computing and colocation purposes in early 2025, also revealing plans earlier this month to build a robotics laboratory on the site. The company plans to expand the campus capacity from the current 30MW to 340MW, including 40MW of behind-the-meter natural gas capacity.

Milton Ault III, Executive Chairman of Hyperscale Data, stated that the company currently operates approximately 28MW of Bitcoin mining capacity at the Michigan campus, and as customer deployments come online, an increasing portion of the campus will be allocated to AI and high-performance computing workloads. This strategy aims to maximize the long-term value of the Michigan campus, with the company committed to developing over 300MW of total power capacity.

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