Hyperscale Data Shuts Down Michigan Bitcoin Mining Operations for AI Center Deal Worth Up to $3 Billion
Hyperscale Data has stopped all Bitcoin mining operations at its Michigan data center in preparation for a major artificial intelligence (AI) infrastructure deployment under an agreement with a California-based neocloud provider. The Master Services Agreement (MSA), which is expected to generate over $1.2 billion in revenue during the initial 10-year term, includes two five-year extension options and potential expansion up to $3 billion if additional power capacity is utilized early on. The MSA allows for deployment of AI infrastructure using up to 52 megawatts (MW) — initially 20 MW with an option for another 32 MW. The Michigan facility has a total eventual power capacity of approximately 340 MW, meaning the current agreement would use only about 20% of that potential. This leaves room for future expansion and additional customers. The company sees this transition as a strategic move to align with growing demand in AI computing infrastructure while also addressing its undervalued market position relative to traditional data center firms.
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Topics: AI infrastructure Bitcoin mining shutdown Data center expansion Master Services Agreement (MSA)