Hyperscale Data Hires Newmark for Michigan AI Campus Debt, 20 MW
Hyperscale Data engaged Newmark on Oct. 28 to find long-term debt for its Michigan AI campus, where a neocloud has 20 MW contracted. No financing is secured and the first 10 MW is due in December 2026.
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Hyperscale Data has engaged Newmark to find lenders; the company says no financing is secured.
Illustration (AI-generated)
Hyperscale Data, the NYSE American-listed AI data center company (GPUS), said on Oct. 28 that its subsidiary Alliance Cloud Services has hired Newmark to find lenders for long-term debt financing of its Michigan AI campus, which has a 20 MW customer contract. No loan has been secured.
The company said the engagement is not a commitment to lend. Any financing would still need lender underwriting, due diligence and definitive agreements, and the amount, pricing and maturity have not been announced. Hyperscale Data said the aim is to cut its reliance on issuing common equity.
The Michigan Campus is operated by Alliance Cloud Services. It has a master services agreement with a California-based neocloud provider for colocation supporting an initial 20 MW of critical AI compute capacity, the release said. The initial term is 10 years, with two five-year extensions at the customer's option. Voltgrid News reported earlier on NVIDIA's Huang saying neocloud demand is off the charts and capital is scarce.
20 MW Contract, 52 MW Option and December Timing
Only 20 MW is under contract; the 52 MW total depends on an option the customer has not exercised, the company said.
Illustration (AI-generated)
The customer also holds a right of first offer on an additional 32 MW, if available, which would take its total to 52 MW of critical AI compute capacity. The company expects the first 10 MW to be energized in December 2026, when revenue is expected to begin. It said that date depends on finishing infrastructure and commissioning.
The release states critical AI compute capacity, which is IT load, and not the utility supply to the site. It does not say how the campus is connected to power, what size the interconnection is, or who supplies the electricity. Those details decide whether 10 MW can be energized in December, and the release leaves them open.
The plan also splits the 20 MW into stages. Half of it is due in about two months, and the larger 52 MW figure depends on an option the customer has not exercised and on capacity being available. Only the 20 MW is under contract.
Newmark's Data Center Financing Track Record
Newmark said its publicly announced data center assignments include arranging a $7.1 billion construction loan in 2025 for an AI data center project in Abilene, Texas, and $975 million of financing in 2026 for a new data center in Northern Virginia. The release gives no target loan size for the Michigan campus.
What Is Still Unconfirmed About the Financing
No lender has been named and no terms have been set. The release does not name the neocloud customer, the campus location within Michigan, the capital cost, the power source or the grid connection date. Hyperscale Data also said there is no assurance that debt will remove the need for more equity. The December energization of the first 10 MW is the next date to check.
