Hyperscale Data Inc. saw its stock price climb in New York trading on Wednesday after the company disclosed a significant master services agreement (MSA) for artificial intelligence compute capacity at its Michigan facility. The deal, which covers an initial 20 megawatts (MW) of AI compute power, is valued at over $1.2 billion over its full 10-year term. Shares of Hyperscale Data (GPUS) last traded at $0.272, up approximately 6.4% on the NYSE American, after reaching an intraday high of $0.3867. Trading volume was heavy, with around 262.3 million shares changing hands.
The contract is with a California-based neocloud provider—a type of cloud firm focused primarily on renting out power for artificial intelligence workloads. The MSA sets the core terms between the two parties, with operations expected to commence in the fourth quarter of 2026. The customer also holds an option to expand the deal up to 52 MW. If all potential expansions and extensions are exercised, Hyperscale Data said its total revenue from the agreement could surpass $3.0 billion. The initial 20 MW phase is estimated to cost between $100 million and $120 million, with Alliance Cloud Services converting approximately 60,000 square feet at the Michigan campus to support the buildout.
CEO William B. Horne stated that the services could begin generating “material, high-margin revenue” as early as late September 2026. Executive Chairman Milton “Todd” Ault III characterized the signed MSA as a “significant milestone” for the company. The announcement marks Hyperscale Data’s first major foray into the AI data center space, a sector that has attracted considerable attention from investors and industry players alike.
Hyperscale Data is entering a competitive landscape dominated by larger players such as Applied Digital, which recently secured a 15-year lease for 210 MW with a major U.S. hyperscaler. That contract is expected to generate approximately $5.2 billion over its base term. The broader market for AI data centers is expanding rapidly, with Goldman Sachs projecting U.S. data center power demand could rise to 66 gigawatts (GW) by 2027, up from 31 GW in 2025. Sam Chandan, founder of the Chen Institute for Global Real Estate at NYU Stern, noted that access to power remains a “binding constraint” for digital infrastructure growth.
As part of its strategy, Hyperscale Data plans to shift some operations at its Michigan campus away from bitcoin mining, where it currently has about 28 MW of capacity. The company intends to continue mining bitcoin at its Montana site. As of June 21, Hyperscale Data held 726.9425 bitcoin—via its subsidiaries Sentinum and Ault Capital Group—valued at roughly $45.9 million based on bitcoin’s closing price of $63,238 that day. Ault expressed confidence in the “long-term value of digital assets.”
Management is scheduled to brief investors later Wednesday at 2:30 p.m. PT. The call will cover updates on the Michigan facility, the Montana build-out, and a long-term goal of reaching 590 MW of capacity across both sites. The Montana project may incorporate small modular reactors (SMRs), which are factory-built nuclear units, according to the company.
Despite the positive news, the deal still faces execution risks. The customer was not named, expansion rights are not locked in, and any larger rollout will require both financing and power approvals. The funding challenge is particularly acute following the company’s establishment of an at-the-market (ATM) stock sale program for up to $300 million last week. Such programs allow the company to sell shares over time, which can dilute existing shareholders.
Investors will be watching closely for further details on the Michigan and Montana expansions, as well as updates on the company’s bitcoin holdings and the progress of the ATM program. The stock’s performance will likely hinge on management’s ability to execute on these ambitious plans in a highly competitive and capital-intensive industry.
