Hyperscale intends to sell land leases, power contracts for Montana data centers

Hyperscale Data (GPUS) announced its intention to sell the land leases and power contracts relating to its two Montana data center properties in order to concentrate resources on its Michigan campus. In February 2023, BNI Montana, a wholly owned subsidiary of Sentinum, which is Hyperscale Data’s wholly owned subsidiary, acquired two land lease agreements and two corresponding power purchase agreements in Montana. The lease and power agreements run for a period of 10 years from June 2022, with a 10-year renewal option. Sentinum built out and developed a fully operational data center on one of the two properties. Each of the two properties, when developed, has the ability to provide approximately 10 megawatts of power. Sentinum currently conducts crypto asset mining at the one site that has been developed. The planned divestiture reflects Sentinum’s sharpened focus on building long-term enterprise value at its Michigan data center, which is positioned to become a cornerstone artificial intelligence and high-performance computing hub. The Michigan facility, owned by Alliance Cloud Services, a wholly owned subsidiary of Sentinum, currently provides approximately 30 MW of power capacity. The company is advancing a staged build-out that is expected to reach 70 MW over the next 20 months through new natural gas distribution infrastructure enabling on-site generation. Ultimately, subject to reaching an agreement with the local utility provider, navigating unknown regulatory challenges and securing appropriate funding, Hyperscale Data anticipates the Michigan campus could expand to approximately 340 MW of capacity.