Data Center Expansion Raises Questions About Corporate Transparency in Southwest Michigan

DOWAGIAC, Mich. — A Las Vegas-based data center company announced plans to more than double its campus in southwest Michigan, but local officials say they were blindsided by the announcement and have never received any development proposals from the company.

Hyperscale Data Inc. said in press releases it has reached an agreement to purchase about 48 and a half acres in Dowagiac, where the company already operates a data center on about 35 acres. If the deal closes, Hyperscale would own about 83 acres total, more than doubling its footprint in the community.

"However, no proposal has been submitted and no decisions have been made. It is your responsibility to bring forward a clear and transparent plan," wrote Dowagiac Mayor Patrick Bakeman in an open letter released Wednesday, April 1, 2026.

City Manager Says City Never Heard About Land Deal

City Manager Kevin Anderson told News Channel 3 that the press release was the first the city heard about the land agreement, and that they have not had any contact with the company about their expansion plans.

"The release was the first the city heard about the land agreement, and that they have not had any contact with the company about their plans," Anderson said.

Residents News Channel 3 spoke with on Tuesday said they have reached out to Hyperscale too, but have never been able to get answers. They also complained of the noise caused by the facility.

Noise Concerns Mount as Expansion Announced

Hyperscale announced last summer its intention to expand from a 30-megawatt to a 340-megawatt site, the power equivalent of tens of thousands of homes.

Previous coverage has described the existing facility as "nothing but a noise trap" as residents push back against the AI data center expansion.

Mayor Demands Timeline and Property Details

Mayor Bakeman issued the open letter asking Hyperscale to immediately announce which property they claim to be purchasing so as to reduce needless speculation in Dowagiac.

The second expectation from the mayor was for Hyperscale to submit plans to the City of Dowagiac within 45 days of the letter, so the city can address concerns raised by the company's announcements.

"Both announcements were vague, and you have neither applied for nor received any approvals necessary to facilitate your expansion plans. By doing this, you've bred uncertainty and eroded our confidence that you will do the right thing in our community," Bakeman wrote in the letter released April 1.

Company Says It Signals Long-Term Commitment

Hyperscale Data CEO Will Horne called the announcement a significant step and said it signals a long-term commitment to the area. The company expects to finalize the purchase within 60 days.

The open letter from Mayor Bakeman was released on April 1, 2026, with the full text addressed to Will Horne, CEO of Hyperscale Data Inc.

"In Dowagiac, we pride ourselves on our ability to create an environment in which both businesses and neighbors can be successful. I can cite many examples throughout Dowagiac where this is occurring," Bakeman wrote.

Previous Expansion Plans Already Controversial

Last year, Hyperscale made a public announcement that it intended to greatly expand its data center operations in the City of Dowagiac. Earlier this week, the company made another public announcement about an unnamed parcel of land in Southwest Michigan, presumed to be in Dowagiac, that it intends to purchase.

Both announcements were vague, according to the mayor, and Hyperscale has neither applied for nor received any approvals necessary to facilitate the expansion plans.

Community Concerns About Data Center Growth

Dowagiac officials said they have not seen floor plans or any operation details from Hyperscale. Some residents are already pushing back online about the noise and impact of data center operations in their community.

The mayor's open letter to Will Horne was signed by Patrick M. Bakeman, Mayor of the City of Dowagiac, Michigan. The city has been waiting for clarity on a development that could significantly impact the community.

Sources:

  • WNDU: "Dowagiac mayor demands details from AI company after expansion announcement" - https://www.wndu.com/2026/04/02/dowagiac-mayor-demands-details-ai-company-after-expansion-announcement/
  • ABC57: "Dowagiac Mayor writes open letter about data centers to Hyperscale Data" - https://www.abc57.com/news/dowagiac-mayor-writes-open-letter-about-data-centers-to-hyperscale-data
  • WWMT: "Dowagiac mayor pens open letter to data company CEO, addresses lack of communication" - https://wwmt.com/news/local/dowagiac-open-letter-mayor-data-center-company-hyperscale-ceo-company-expansion-communication-patrick-bakeman-will-horne-plans-michigan-wwmt