Hyperscale Data Announces Minimum Sale Threshold Of $750M For Its Michigan AI Data Center Campus To Merit Serious Consideration For Disposal, With High End Valuation Up To $1.25B

Management currently estimates that the Michigan Campus could support a valuation ranging from approximately $750 million to $1.25 billion. This assessment reflects the economics of the executed master services agreement (the "MSA"), the campus's existing infrastructure and access to power, its expansion potential and relevant public-market valuations within the AI infrastructure industry.

The Company continues to evaluate alternatives intended to maximize stockholder value, including a potential sale of the Michigan Campus, an initial public offering ("IPO") of Sentinum, Inc. ("Sentinum"), a wholly owned subsidiary of the Company and the sole owner of Alliance Cloud Services, LLC ("ACS"), in which a minority position in Sentinum is sold to fund expansion of the facility, or continued ownership and development of the business. No definitive decision has been made regarding any potential transaction.

Michigan Campus Contract and Expansion Potential

ACS recently entered into the MSA with a California-based neocloud provider (the "Customer") for the deployment of an initial 20 megawatts ("MW") of critical AI compute capacity at the Michigan Campus. The MSA has an initial term of 10 years and includes two five-year extension options that may be exercised by the Customer. If the Customer exercises both extension options, the initial 20 MW deployment is expected to generate more than $1.2 billion in aggregate revenue over the maximum 20-year term.

The MSA also provides the Customer with a right to an additional 32 MW of critical AI compute capacity. If the Customer exercises that right within the first two years of the initial term and the additional capacity continues through both extension terms, the MSA is expected to generate more than $3.0 billion in total contract revenue from the potential 52 MW deployment.

The Company has previously announced that it believes the Michigan Campus could ultimately support more than 300 MW of total power capacity. The development of any capacity beyond the initial 20 MW covered by the MSA is subject to financing, regulatory approvals, engineering, utility agreements, infrastructure availability, customer demand and other conditions. There can be no assurance that additional capacity will be developed, financed, contracted or placed into service.