Hyperscale Data Provides Update on Progress of Michigan AI Data Center; More Than $70 Million Invested in Alliance Cloud Services and the Michigan Facility

Operations under Previously Announced MSA Expected to Begin in November 2026

LAS VEGAS, Sept. 17, 2026 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence ("AI") data center company anchored by Bitcoin ("Hyperscale Data" or the "Company"), provided an update on the continued development of its Michigan AI data center (the "Michigan Facility") operated by Alliance Cloud Services, LLC, an indirect wholly owned subsidiary of the Company ("ACS").

As of September 15, 2026, Hyperscale Data has invested more than $70 million into ACS and the development of the Michigan Facility. This investment represents a substantial portion of the overall capital program required to prepare the Michigan Facility for the deployment of AI compute capacity to ACS' customer, a California-based neocloud provider, pursuant to the previously announced master services agreement between such provider and ACS ("MSA").

As part of this investment and development program, the Company has acquired a substantial amount of the equipment required to bring the contracted capacity online at the Michigan Facility. Hyperscale Data is currently working toward commencing operations under the MSA in November 2026, at which point the Company expects to begin generating revenue and cash flow from the MSA.

The MSA provides for an initial 20 megawatts ("MW") of critical AI compute capacity and has an initial 10-year term with two five-year extension options. If the MSA continues for the entire 20-year term, the Company expects it to generate more than approximately $1.2 billion in revenue.

Additionally, the customer has the right to increase critical AI compute capacity up to a total of 52 MW, which, if fully exercised and maintained for the entire 20-year term, is expected to increase total contract revenue to more than $3.0 billion.

52 MW of critical AI compute capacity deployment would represent less than 20% of the Michigan Facility's approximately 340 MW total potential capacity. Even following a full 52 MW deployment by the existing customer, approximately 270 MW of potential additional capacity would remain for future development and additional customer deployments, subject to obtaining the required power, infrastructure, financing and regulatory approvals.

"Our investment of more than $70 million in ACS and the Michigan campus is about execution," stated Will Horne, Chief Executive Officer of Hyperscale Data. "This capital is part of the overall investment required to prepare the facility for our neocloud customer under the MSA, and we have now acquired a substantial amount of the equipment required for the planned deployment. We are working toward bringing the initial contracted capacity online beginning in November, when we expect to start generating revenue and cash flow under an agreement that could generate more than $3.0 billion in revenue over a 20-year term."

"We believe the more than $70 million invested to date has created a substantial foundation for this transformation," continued Mr. Horne. "Our immediate priority is getting our customer online, generating cash flow and successfully executing the initial deployment. From there, we intend to continue developing the campus and pursuing the significant amount of potential capacity that remains."

The Company continues to evaluate the optimal long-term strategy for ACS and the Michigan Facility, including continued development, strategic partnerships, additional customer deployments, a potential separation or initial public offering of ACS, or a potential sale of the Michigan Facility if the Company believes such a transaction would maximize stockholder value.

Hyperscale Data expects to provide additional updates as material developments and deployment milestones are achieved.

For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data's public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

About Hyperscale Data, Inc.

Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it offers colocation and hosting services for the emerging AI ecosystems and other industries. Another of Hyperscale Data's wholly owned subsidiaries, Ault Capital Group, Inc. ("ACG"), is a hybrid private equity firm and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.

Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the digital assets and the third wholly owned subsidiary of the Company, Omnipresent Robotics, LLC. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through Ault Lending, LLC, a licensed lending subsidiary. Hyperscale Data's headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.

On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the "Series F Preferred Stock") to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the "ACG Shares"). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be shareholders of ACG upon the occurrence of the Divestiture.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "believes," "plans," "anticipates," "projects," "estimates," "expects," "intends," "strategy," "future," "opportunity," "may," "will," "should," "could," "potential," or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company's business and financial results are included in the Company's filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company's website at hyperscaledata.com.

SOURCE Hyperscale Data Inc.