Key Highlights

• Hyperscale Data, Inc. (NYSE American: GPUS) is in advanced negotiations for a Master Services Agreement (MSA) with a potential customer, expected to provide 20 megawatts (MW) of critical AI compute capacity at its Michigan Data Center Campus.
• Campus expansion could scale up to 52 MW, driving potential total value to over \$2.5 billion, utilizing only about 17% of the campus’s eventual 300 MW capacity.
• Initial deployment: First 10 MW operational within 90 days, followed by another 10 MW after 90 days.
• Colocation and related data center services will be provided through Alliance Cloud Services, LLC, an indirect wholly owned subsidiary of Hyperscale Data.
• Hyperscale Data may cease all Bitcoin mining operations at the Michigan Campus, reallocating power capacity to higher-margin AI services.
• Long-term contracts (up to 20 years) can generate revenue in excess of \$1 billion for 20 MW, and an additional \$1.5 billion for 32 MW expansion.
• Michigan Campus has the potential for further expansion, possibly supporting over 300 MW of total power capacity, making it a scalable platform for AI infrastructure.

Detailed Investor Overview

Hyperscale Data has reported significant progress in its negotiations with a prospective customer seeking large-scale AI compute infrastructure. The agreement under negotiation, if finalized, would see Hyperscale Data’s subsidiary Alliance Cloud Services, LLC provide colocation and related services for AI deployments at the Michigan Campus. The company expects the first 20 MW of power capacity to be delivered this year, with 10 MW operational in 90 days and another 10 MW in the subsequent 90 days.

The anticipated contract is structured with an initial term and renewal options that could last up to 20 years. For investors, this is a critical point: such an agreement could generate over \$1 billion in revenue over its lifetime for 20 MW, with the potential for further expansion to 52 MW yielding an additional \$1.5 billion. Total revenue from the expanded 52 MW capacity could reach \$2.5 billion over 20 years.

The Michigan Campus itself is positioned for significant growth, with management projecting the site could eventually support more than 300 MW of power capacity. The current negotiations only utilize less than 7% of this capacity for 20 MW, and no more than 17% if expanded to 52 MW, leaving ample headroom for additional deals and future growth.

Hyperscale Data is also planning to transition away from Bitcoin mining operations at the Michigan Campus, focusing its resources on higher-margin AI compute services—a strategic shift that may positively impact profitability and share price. The company sees strong validation of its strategy, given the robust customer engagement and the anticipated high demand for scalable AI infrastructure in the U.S.

For shareholders, this news is highly price sensitive:

• The transition to AI compute services marks a fundamental business shift from lower-margin Bitcoin mining to potentially higher-margin, long-term AI infrastructure contracts.
• The prospective contract, if executed, would provide predictable, recurring revenue streams for up to 20 years.
• Expansion plans signal significant future growth potential for the Michigan Campus, with room for further deals.
• There are risks: the expansion concepts remain preliminary, subject to regulatory, financing, infrastructure, engineering, utility, and other uncertainties. No definitive agreements have been finalized at this time.

Corporate Structure and Divestiture Plans

Hyperscale Data operates through its wholly owned subsidiary Sentinum, Inc., which mines digital assets and offers colocation and hosting services for AI and other industries. Another wholly owned subsidiary, Ault Capital Group, Inc. (ACG), is a diversified holding company involved in numerous sectors, including AI software, equipment rental, defense/aerospace, industrial, automotive, hotel operations, and private credit through Ault Lending, LLC.

Investors should note the planned divestiture of ACG in Q2 2027. This will occur through the voluntary exchange of newly issued Series F Exchangeable Preferred Stock for shares in ACG. Only holders who surrender their Series F Preferred Stock in the exchange offer will be entitled to receive ACG Shares and become ACG shareholders. After the divestiture, Hyperscale Data will focus exclusively on data centers and high-performance computing services, retaining its digital assets.

Management Commentary

Will Horne, CEO of Hyperscale Data, stated: “We are confident in our prospects and believe we will have significant updates for stockholders in the coming days and weeks. We continue to believe our Michigan Campus is positioned to offer top-of-the-line AI compute environments as we continue to make progress with the installation of key infrastructure to support potential customers.”

The company emphasized the preliminary nature of current expansion concepts and the risks and uncertainties involved. Management believes the high level of customer engagement validates the strategic value of the Michigan Campus and the demand for AI infrastructure, but cautions that no agreements are finalized yet.

Investor Resources

Investors, stockholders, and interested parties are encouraged to review Hyperscale Data’s public filings and press releases available via hyperscaledata.com and www.sec.gov for further information.

Investor Contact: [email protected] or 1-888-753-2235