Hyperscale Data (GPUS) said Monday it is in advanced talks with a potential customer for AI data center services at its Michigan campus and may phase out Bitcoin mining operations there to free up power capacity for higher-margin AI infrastructure workloads.

The company said its subsidiary, Alliance Cloud Services, expects to sign a co-location and data center services agreement in the coming weeks.

If finalized, the project would initially deploy 10 megawatts of power capacity, with another 10 megawatts expected about 90 days later, the company said, though the project remains subject to negotiations and other uncertainties.

Hyperscale Data said its Michigan campus has the potential to support more than 300 megawatts of total power capacity.

Shares of Hyperscale Data were up more than 34% in premarket activity Monday.