Hyperscale Data Reviews Options for Michigan Data Center

Hyperscale Data, Inc. has started a strategic review of options for its data center operations, including a possible sale or lease of part or all of its Michigan data center, the company said in a press release. The board has begun discussions with a major investment banking firm and said there is no predetermined outcome.

The review follows the company’s AI data center agreement with a California neocloud provider through its indirect wholly owned subsidiary, Alliance Cloud Services, LLC. The initial deployment covers about 20 MW of AI compute capacity and is expected to represent about $1.2 billion in contractual value over its term.

The agreement includes possible expansion to about 52 MW, which could raise total contract value to more than $3.0 billion if exercised and deployed. Hyperscale Data has also discussed possible future growth of the Michigan site to more than 300 MW of total power capacity, subject to financing, approvals, infrastructure, demand, and other conditions.

The company said the review could also consider a strategic investment, joint venture, continued ownership and development, or changes to its broader corporate structure. It has set no timetable and does not plan to provide updates unless the board approves a transaction or determines that further disclosure is needed.