Hyperscale Data said on September 2 that it had switched off all Bitcoin miners at its Michigan data center, effective September 1. The company said in its announcement that the shutdown clea
Hyperscale Data said on September 2 that it had switched off all Bitcoin miners at its Michigan data center, effective September 1. The company said in its announcement that the shutdown clears the facility for a customer’s artificial-intelligence infrastructure under an existing master services agreement. The move ends mining at this site, not necessarily every Bitcoin-related activity across the company.
Hyperscale Data said it and the unnamed California-based neocloud customer agreed to terminate mining immediately after the customer inspected the facility and the parties reviewed preparation work. That work includes engineering design and equipment procurement. The company said the site’s electrical capacity, physical infrastructure, personnel and capital can now be directed toward the customer deployment and further expansion.
The decision places Hyperscale Data within a broader shift as miners evaluate power-intensive AI workloads. BlockchainReporter recently covered Cango’s reduced mining hashrate and planned AI transition, although Hyperscale Data’s announcement concerns a complete shutdown at one named facility.
The master services agreement provides for a 20-megawatt deployment with an initial 10-year term and two optional five-year extensions. Hyperscale Data estimates that the contract would generate more than $1.2 billion if the customer uses the full 20-year maximum term. That figure is a company projection, not revenue already earned.
The customer also holds an option for another 32 megawatts. Hyperscale Data estimates total contract revenue could exceed $3 billion if that option is exercised within two years and remains in place through both extensions. These outcomes depend on customer decisions and continued execution.
The company ultimately anticipates about 340 megawatts of power capacity at the Michigan site. It estimates that even the expanded customer deployment would use no more than roughly 20% of that total, leaving potential capacity for other customers. Hyperscale Data cautioned that those expansion concepts remain preliminary and depend on development, financing, approvals and economic viability.
Hyperscale Data also expects gains from a planned sale of the mining servers, but disclosed no buyer, price or timetable. The announcement therefore confirms the operational shutdown while leaving the economics of the equipment disposal and the larger AI buildout unresolved. The transition resembles the industry diversification discussed in BlockchainReporter’s review of AI contracts among Bitcoin miners, but the projected contract values remain contingent rather than realized.
