Hyperscale Data Inc. said it will shut down all bitcoin mining operations at its Michigan data center by September 1, 2026, to repurpose the facility for artificial intelligence workloads under a 20-year contract with a California-based neocloud provider.
The transition follows a Master Services Agreement that guarantees minimum revenue of $1.2 billion over the base 10-year term, with two 5-year renewal options. The client may also exercise an early capacity expansion option, adding up to 32 megawatts within the first two years and extending the agreement to 20 years, which would increase total contract value to more than $3 billion.
The facility, with a total power capacity of approximately 340 megawatts, will dedicate 20 megawatts to AI workloads under the initial deployment. Even if the client exercises all expansion options, the facility would still have roughly 80% of its planned capacity available for future clients, subject to power availability and development progress.
Chief Executive William Horne said the immediate shutdown of bitcoin mining operations would allow the company to reallocate energy, infrastructure and resources to prepare the facility for the client’s needs. The company’s shares fell 14.57% to $0.2393 during the session before rebounding 6.10% to $0.2539 in after-hours trading.
