Hyperscale Data, Inc. (GPUS) shares shot up more than 43% in premarket trading Monday after the company revealed it's in advanced negotiations for a potential AI data center deal in Michigan that could be worth over $2.5 billion over 20 years.

The company's indirect subsidiary, Alliance Cloud Services, is talking with a prospective customer about providing colocation and related services for AI compute deployments. If they ink a deal, it would start with 10 megawatts of critical power capacity within 90 days, followed by another 10 megawatts 90 days later.

That initial 20-megawatt phase alone could generate more than $1 billion over two decades. And there's a planned 32-megawatt expansion in 2028 that could add roughly $1.5 billion, bringing the total potential revenue to over $2.5 billion. Not bad for a company that's also been dabbling in Bitcoin mining.

Hyperscale Data says the full 52-megawatt deployment would use no more than 17% of the campus's potential 300-megawatt power capacity, so there's plenty of room to grow. The company may even wind down its Bitcoin mining operations to shift capacity toward higher-margin AI infrastructure services. But let's not get ahead of ourselves—no definitive agreement has been signed yet.

Meanwhile, short interest in GPUS has fallen sharply, dropping to 27.35 million shares from 41.89 million in the latest reporting period. About 20.21% of the public float remains sold short, with a days-to-cover ratio of just 1 based on average daily volume of 49.16 million shares.

As for the stock price action, Hyperscale Data shares were up 43.92% at $0.2224 during premarket trading on Monday, according to market data.