Hyperscale Data's Subsidiary Signs Multi-Year Agreement for AI Implementation in Michigan Data Center

Hyperscale Data Subsidiary Secures Major AI Infrastructure Deal

Hyperscale Data, Inc. (NYSE American: GPUS), a company transitioning into a pure-play data center operator, has announced a significant development in its artificial intelligence (AI) infrastructure business. The company's wholly-owned subsidiary, Alliance Cloud Services, LLC, has entered into a three-year agreement with a Silicon Valley-based cloud services provider for its Michigan Data Center 1

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Agreement Details and Technical Specifications

The agreement encompasses space, power, and connectivity within Alliance Cloud's Michigan facility. Key aspects of the implementation include:

• Initial deployment of seven server cabinets, with the potential to add five more
• Each cabinet will initially use approximately 40 kilowatts of power
• Cabinet-level cooling capable of handling twice the initial power density
• Utilization of a small portion of the 100,000 sq.ft. data center
• Access to a fraction of the data center's 28 megawatts (MW) of available power capacity 1

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While the current implementation uses only a small part of the available resources, it showcases the high-density power and cooling solutions necessary for advanced computing requirements, particularly in AI applications.

Strategic Importance and Future Plans

William Horne, CEO of Hyperscale Data, emphasized the significance of this agreement:

"This is an important milestone in both the development of our data center business, which we expect to develop to 300+ MW of power over the next four years, and a crucial element in our transition to making the Company a pure-play in the data center space." 1

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This deal marks a pivotal step in Hyperscale Data's strategic shift from a diversified holding company to a focused data center operator supporting high-performance computing services, including AI ecosystems.

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Company Background and Transition

Hyperscale Data is undergoing a significant transformation:

• Transitioning from a diversified holding company to a specialized data center operator
• Owns and operates data centers for digital asset mining and colocation services
• Provides various tech-related services through subsidiaries, including an AI software platform
• Actively engaged in private credit and structured finance through a licensed lending subsidiary 1

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The company's headquarters are located in Las Vegas, Nevada, and it trades on the NYSE American under the ticker GPUS.

Market Implications and Industry Trends

This agreement reflects the growing demand for specialized infrastructure to support AI implementations. As companies increasingly adopt AI technologies, the need for high-density, high-performance data center solutions is likely to grow. Hyperscale Data's strategic pivot positions it to capitalize on this trend in the rapidly evolving AI and data center markets.