Hyperscale Data Appoints Newmark to Seek Long-Term Debt Financing for Michigan AI Data Centre

Hyperscale Data, Inc. (AMEX:GPUS) has engaged commercial real estate advisory firm Newmark Group to identify potential lenders for the development and expansion of its artificial intelligence data centre campus in Michigan.

The appointment was made through Alliance Cloud Services (ACS), an indirect wholly owned subsidiary of Hyperscale Data, which operates the Michigan facility.

The company is seeking long-term debt financing to support construction and infrastructure development while reducing its reliance on issuing additional common shares.

No financing agreement has been secured, and Hyperscale Data has not disclosed the amount of funding it intends to raise or the proposed borrowing terms.

Newmark to Evaluate Institutional Financing Options

Newmark will assist Hyperscale Data in identifying prospective institutional lenders and assessing potential financing arrangements for the Michigan campus.

The company intends to evaluate borrowing structures that reflect the project’s construction requirements, anticipated operating cash flows and longer-term development plans.

Potential financing terms will be assessed against several factors, including interest costs, repayment schedules, collateral requirements and lender covenants.

Newmark has previously arranged financing for large-scale data centre developments, including a $7.1 billion construction loan for an AI data centre project in Abilene, Texas, in 2025.

The firm also arranged $975 million in financing for a newly constructed data centre in Northern Virginia during 2026.

Hyperscale Data said Newmark’s experience in digital infrastructure capital markets was a factor in its appointment.

Company Seeks to Reduce Reliance on Equity Financing

Hyperscale Data’s financing strategy is intended to establish a longer-term funding structure for the Michigan facility as it progresses through construction, commissioning and commercial operations.

Management believes institutional debt financing could provide greater certainty over future capital expenditure requirements and reduce the need for additional equity issuance.

Executive Chairman Milton “Todd” Ault III said the appointment represents a step towards securing funding suited to the scale of the project.

“Hiring Newmark is an important step toward financing our Michigan Campus on an institutional, long-term basis,” Ault said.

“Successfully securing the debt financing we are pursuing would, once consummated, substantially reduce our need to raise additional equity capital for this project. We believe Newmark’s significant experience and expertise can help us pursue a financing structure that reflects the scale of the Michigan Campus and its anticipated revenue profile. Our objective is to fund development responsibly while preserving more of the project’s long-term value for our stockholders.”

Chief Executive Officer William Horne said the company would focus on financing terms that support development while maintaining financial flexibility.

“Long-term debt financing arranged with Newmark’s assistance would reduce our reliance on outside equity and provide a stronger financial foundation for building and operating the Michigan Campus over the long term,” Horne said.

The company acknowledged that securing debt financing would not necessarily eliminate the need for additional equity capital.

Michigan AI Campus Has Initial 20 MW Customer Agreement

The Michigan campus is operated by ACS, which previously entered into a master services agreement with a California-based neocloud provider.

The agreement covers colocation and related data centre services supporting an initial 20 megawatts (MW) of critical AI computing capacity.

The contract has an initial term of 10 years, with two additional five-year extension options available to the customer.

The customer also holds a right of first offer for a further 32 MW of capacity, subject to availability.

If the additional capacity were developed and taken up, the customer’s total deployment could reach 52 MW.

However, the additional 32 MW is not part of the initial contracted capacity, and any expansion remains subject to the relevant contractual provisions and development requirements.

Hyperscale Data has not disclosed the financial value of the customer agreement.

First 10 MW Expected to Become Operational in December 2026

Hyperscale Data continues to target December 2026 for energising the first 10 MW of critical AI computing capacity at the Michigan facility.

The company expects revenue-generating activities to begin in connection with that milestone.

Achieving the target remains dependent on completing the necessary infrastructure work and commissioning procedures.

The proposed financing arrangements are intended to support the facility’s development through successive stages, including infrastructure expansion and customer deployments.

Management said a suitable long-term debt structure could improve its ability to plan investment as the campus moves towards revenue-generating operations.

Financing Remains Subject to Lender Approval

Although Newmark has been appointed to identify potential lenders, the engagement does not constitute a financing commitment.

Any borrowing arrangement would require lender due diligence, underwriting, definitive documentation and satisfaction of applicable closing conditions.

Hyperscale Data has not announced an expected financing completion date, interest rate, loan maturity or collateral structure.

The company also cautioned that acceptable financing terms may not be available and that additional equity funding could still be required.

Hyperscale Data Outlook

Hyperscale Data’s appointment of Newmark forms part of its effort to establish an institutional financing structure for the Michigan AI data centre campus.

The company’s immediate operational objective remains the planned energisation of the first 10 MW of computing capacity in December 2026, followed by the commencement of revenue-generating services.

The existing customer agreement provides for an initial 20 MW deployment, with the possibility of further expansion to 52 MW under specified conditions.

The financial impact of the Newmark engagement will depend on whether lenders agree to provide funding and the terms of any resulting debt arrangements.

Until financing is secured, the company’s capital requirements and potential need for additional equity issuance remain unresolved.

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