Data center firm Hyperscale Data is to scale its Michigan data center to 300MW, and is exploring its options on the facility.
Hyperscale announced that its Alliance Cloud Services subsidiary has reached an agreement in principle with the local utility expected to energize its Michigan data center and increase power capacity from approximately 30MW to 300MW.
The completion of the power upgrade is anticipated to take 44 months from the execution of a formal Letter of Authorization between Alliance Cloud and the utility, which is currently being negotiated.
“We are pleased to have finally reached an agreement in principle with the local utility and look forward to executing a definitive agreement with it,” said Milton “Todd” Ault III, executive chairman of Hyperscale Data. “This would be a game-changer for our business and the future of our AI infrastructure. scaling our data center to 300MW would significantly enhance our ability to meet surging demand from AI and high-performance computing customers. It also marks a major step forward in our transformation into a pure-play data center operator.”
The company has also announced that it has engaged Northland Capital Markets to assist in “evaluating strategic alternatives” for its Michigan facility. Pathways being explored include raising debt or equity for expansion, or forming joint ventures.
“As we continue our transition into a pure-play data center business, we are considering all strategic options to maximize stockholder value—whether through development, monetization, or strategic partnerships. We look forward to exploring multiple opportunities that align with our long-term growth strategy,” said William B. Horne, CEO of Hyperscale Data.
Hyperscale (formerly Ault Alliance) was previously a diversified holding company with investments 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 – as well as a name change – with plans to divest all its non-data center assets. Hyperscale Data is now majority-owned by Ault & Company, Inc.
The company operates data centers in Michigan and Montana. The 34.5-acre Michigan site - at 415 East Prairie Ronde Street, Dowagiac, was built in 1972 as a manufacturing space. What was then BitNile (and later Sentinum) acquired the 617,000 sq ft (57,320 sqm) site in May 2022; Hyperscale is currently in the process of repurposing part of the site from Bitcoin mining to HPC and colocation.
In January Hyperscale announced it had 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. The racks will start out using approximately 40kW per cabinet.
The company broke ground on a 20MW Montana site in 2023.
