Hyperscale Data plans natural gas infrastructure for Michigan data center

Published 29/07/2025, 11:52
Hyperscale Data plans natural gas infrastructure for Michigan data center

LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS), a micro-cap technology company with a market value of $21.2 million, announced Tuesday that its subsidiary Alliance Cloud Services has entered into an engineering design agreement with SEMCO Energy Gas Company to plan natural gas distribution infrastructure for its Michigan data center. According to InvestingPro data, the company’s stock has declined over 80% year-to-date, reflecting significant operational challenges.

The agreement aims to enable approximately 40 megawatts of incremental on-site power generation capacity at the facility. Under the terms, SEMCO will conduct preliminary engineering and design work for pipeline routing, metering infrastructure, and related equipment to deliver increased natural gas capacity. InvestingPro analysis reveals the company’s challenging financial position, with a weak overall Financial Health Score of 1.18 out of 5 and concerning liquidity metrics.

The companies intend to negotiate a definitive facility construction agreement within the next several months. Once initiated, construction is expected to be completed within 15 months from execution of the construction agreement. With a current ratio of 0.28 and total debt to capital ratio of 0.85, the company’s ability to fund major capital projects warrants careful monitoring.

"This Agreement marks a key milestone as we expand the infrastructure that powers our Michigan Site," said Will Horne, Chief Executive Officer of Hyperscale Data, in a press release statement. The expansion comes as the company faces significant operational headwinds, with revenue declining 34% in the last twelve months and negative EBITDA of $19 million.

Hyperscale Data, through its subsidiary Sentinum, Inc., operates data centers for digital asset mining and colocation services for artificial intelligence ecosystems. The company’s other subsidiary, Ault Capital Group, is a diversified holding company.

The company currently plans to divest itself of Ault Capital Group around December 31, 2025, though it noted there is no assurance this divestiture will be completed during that timeframe.

The agreement with SEMCO is subject to regulatory approvals and completion of necessary due diligence before moving to the construction phase later this year.

In other recent news, Hyperscale Data, Inc. reported a 45% increase in second-quarter revenue, reaching $25.8 million compared to $17.8 million in the same period last year. The company also reaffirmed its full-year revenue guidance, projecting between $125 million and $135 million for 2025. In addition, Hyperscale Data announced plans to expand its Michigan data center to 340 megawatts by the third quarter of 2029, with a focus on artificial intelligence and high-performance computing. The company currently operates 30 megawatts at the facility and aims to increase this to 70 megawatts over the next 20 months. Furthermore, Hyperscale Data declared monthly cash dividends for two series of its preferred stock, with payments scheduled for August 11, 2025. The company also initiated a strategy to acquire up to $10 million worth of XRP digital assets, with weekly updates on its acquisition activity starting August 12, 2025. Meanwhile, BitNile.com, a subsidiary of Hyperscale Data, is seeking listings on centralized digital asset exchanges for its $NILE coin, which currently has a market capitalization of approximately $103 million. These developments reflect Hyperscale Data’s ongoing strategic initiatives and financial activities.

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