Cryptomine and data center firm Hyperscale Data is to increase capacity at its Michigan facility via natural gas.
The company’s wholly owned subsidiary, Alliance Cloud Services (ACS), is set to expand the capacity of its Michigan data center by an additional 40MW through a behind-the-meter agreement with an undisclosed local natural gas provider.
The supply agreement adds to an earlier announcement this week, in which Hyperscale reached a deal with the local utility to increase the power capacity of its Michigan data center from approximately 30MW to 300MW.
The completion of the utility electrical upgrade is anticipated to take 44 months from the execution of a formal Letter of Authorization between ACS and the utility, which is currently under negotiation.
Following the latest announcement, the ACS data center will now have a capacity of 340MW.
The 40MW of natural gas power will reportedly be delivered significantly sooner than the previously announced grid-based upgrade. The project is expected to be completed within 18 months of the execution of definitive agreements.
“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,” said William Horne, CEO at Hyperscale.
In addition, the company has signaled that it is currently exploring options that could provide an additional 85MW of incremental capacity.
The completion of the power upgrades is subject to several contingencies. These include failure to agree upon terms and execute definitive agreements, the company's inability to raise sufficient funds to pay for the power upgrades, failure to obtain regulatory consents and approvals, the inability to obtain adequate easements, and other presently unforeseen events or conditions.
The 34.5-acre Michigan site, located at 415 East Prairie Ronde Street, Dowagiac, was built in 1972 as a manufacturing space. Hyperscale is currently repurposing part of the site from Bitcoin mining to HPC and colocation.
In January, the firm signed a three-year agreement for space, power, and connectivity within the Michigan facility to a “Silicon Valley-based cloud services provider.” The deal is for an initial seven racks with the capability to add an additional five racks.
Hyperscale (formerly Ault Alliance) was a diversified holding company that invested in oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations, and textiles. Last year, it announced a full pivot towards AI and data centers a name change, and plans to divest all its non-data center assets. Hyperscale Data is now majority-owned by Ault & Company, Inc.
