Hyperscale Data's subsidiary, Alliance Cloud Services, LLC, has entered into a Master Services Agreement with an undisclosed customer to provide 20 megawatts (MW) of artificial intelligence (AI) computing capacity at its data center in Dowagiac, Michigan. The agreement has a total potential value of approximately $1.2 billion over its full 20-year term, including extension options.
Key Details
- Agreement & Scope: The agreement, executed on June 23, 2026, covers the deployment of 20 MW of critical AI compute capacity for colocation and related data center services.
- Contract Value & Term: The initial term is 10 years with two five-year extension options. If fully exercised, the total contract value is approximately $1.2 billion. The customer is required to make upfront payments including a $5 million non-recurring charge and a $5.6 million security deposit.
- Deployment Timeline: The 20 MW capacity will be delivered in two phases: Phase 1 (10 MW) is targeted for September 21, 2026, and Phase 2 (10 MW) is targeted by the end of 2026.
- Expansion Option: The customer has a right of first offer for an additional 32 MW of AI compute capacity, which could increase the total potential contract value to approximately $3.0 billion.