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Hyperscale Data has shut down all Bitcoin mining at its Michigan data center to prepare the site for an artificial intelligence customer. Hyperscale Data estimates the existing 20-megawatt contract could generate more than $1.2 billion if the customer exercises both five-year extensions and the deployment runs for the full 20-year maximum term.
Michigan Bitcoin Miners Went Offline Sept. 1
Hyperscale Data said all Bitcoin miners at the Michigan facility were switched off effective Sept. 1. The company is redirecting the site’s power, infrastructure, and staff toward an AI deployment after the customer completed an inspection.
The company also plans to sell the Bitcoin mining servers previously used at the site. CEO William Horne said the shutdown would allow the team to focus the facility’s resources on the AI project.
AI Contract Starts With 20 Megawatts
Hyperscale Data signed the master services agreement in June through its Alliance Cloud Services subsidiary. The unnamed customer is a California-based neocloud provider, and the initial deployment covers 20 MW of AI compute capacity.
The contract has an initial 10-year term with two optional five-year extensions. The company previously said it expected the first 20 MW to become operational during the fourth quarter of 2026 and estimated the initial retrofit at $100 million to $120 million.
Expansion Option Could Push Revenue Above $3 Billion
The customer also has an option to add another 32 MW, bringing the potential deployment to 52 MW. That option must be exercised within the first two years of the initial contract term.
Hyperscale Data estimates total revenue could exceed $3 billion if the customer takes the additional capacity and retains it through both extensions. Both the $1.2 billion and $3 billion figures are company projections that depend on future customer decisions.
The shutdown ends Bitcoin mining at the Michigan facility, while Hyperscale Data says mining will continue at its Montana site. The company is shifting more of its Michigan capacity toward AI and high-performance computing.
