Hyperscale Data has ceased Bitcoin mining operations at its data center in Michigan as it prepares the site for AI usage.

The company revealed that all Bitcoin mining operations ended on September 1, 2026, as it prepares for the deployment of a neocloud customer's AI data center infrastructure at the site.

The unnamed customer is described as a California-based neocloud that signed a lease agreement with Hyperscale Data in June 2026.

The agreement will see 20MW deployed and operational in Q4 of 2026, and could see the customer scaling up to 52MW of compute capacity. The contract will run for an initial term of ten years with two five-year extension options. Should it run to its maximum term, the deal is valued at around $1.2 billion.

"We are pleased with the continued progress we are making at the facility," said William Horne, Hyperscale Data's CEO. "The immediate shutdown of the Bitcoin mining operations allows our team to focus the facility's power, infrastructure, and resources in preparing the facility for its usage by our customer.

"Further, as the expansion of the facility to support AI computing infrastructure progresses, it is my belief that our stockholders will be rewarded as the company's market capitalization, which currently trades at a significant discount to other data center companies, begins to normalize in comparison to its available contracted power capacity.  In fact, earlier this year, VanEck's head of digital asset research stated that Bitcoin mining companies, like ours, that could repurpose existing sites for AI were 'sitting on a gold mine' because they were trading at a steep discount to traditional data center companies."

Hyperscale Data acquired the data center located at 415 East Prairie Ronde Street, Dowagiac, in May 2022. The facility spans 617,000 sq ft (57,320 sqm). Built in 1972 as a manufacturing space, Hyperscale has been repurposing the site for HPC and colocation since early 2025, and in June 2026 revealed further plans for a robotics lab.

The company aims to expand the site - currently operating with 30MW of capacity -to 340MW, including 40MW of behind-the-meter natural gas capacity.

Hyperscale (formerly Ault Alliance) was previously a diversified holding company with investments in oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations, and textiles. In 2024, it announced a full pivot towards AI and data centers – as well as a name change – with plans to divest all its non-data center assets.