The Company stated that customer discussions and ongoing negotiations have advanced to a stage where management believes Hyperscale Data will enter into one or more power and infrastructure lease agreements related to AI compute deployments in the coming weeks and months.

Hyperscale Data further announced that it has proactively ordered and paid for key electrical and infrastructure equipment to support the rapid deployment of customer AI compute infrastructure at its Michigan campus. The equipment purchases support approximately half of the Company's initial approximately 30 megawatts ("MWs") AI compute development initiative and are intended to reduce deployment timelines and accelerate customer onboarding.

The Michigan campus currently supports existing digital infrastructure operations, which management believes provides a foundation for the continued development of additional AI compute capacity. The Company believes these infrastructure investments, together with existing operational capabilities, position Hyperscale Data to support large-scale NVIDIA-powered compute deployments and scalable AI workloads.

The Company stated that it is currently engaged in active discussions with multiple parties regarding potential leasing arrangements for AI infrastructure, colocation services and high-density power utilization on the Michigan campus.

Management believes access to scalable power infrastructure has become an increasingly important factor in the deployment of high-density AI compute environments. Hyperscale Data believes that the Michigan campus may support phased long-term expansion opportunities, subject to regulatory approvals, financing, infrastructure availability, engineering studies, utility agreements and other factors. The Company believes the campus may ultimately have the potential to support over 300 MWs of total power capacity.

The Company cautioned that these expansion concepts remain preliminary and subject to numerous risks and uncertainties, and there can be no assurance that such expansion capacity will ultimately be available, developed, financed, approved or economically viable.