Data Center Expansion Plan Announced After Months of Resident Complaints

DOWAGIAC, Mich. — A data center company operating in Dowagiac has announced plans to more than double its campus, citing the exploding demand for artificial intelligence services. However, the expansion has reignited long-standing concerns among local residents who say the noise from the existing facility has become unbearable and is threatening to hurt property values in the community.

Hyperscale Data, an AI and bitcoin mining company, reached an agreement to expand its campus by more than 48 acres of land, according to a press release this week. The company said it intends to close on some of the additional property within the next 60 days.

City Manager Surprised by Announcement

City Manager Kevin Anderson told News Channel 3 that the city received the press release like everyone else — it was the first time the city had heard about the planned expansion directly from the company.

"We saw the press release like you did, that said they are looking to buy some additional property and hoping to close on some in the next 60 days," Anderson said. "We haven't had any contact with them about that."

Anderson explained that the company doesn't use Dowagiac's municipal electric utility and that the city typically only receives development proposals after deals are closed and forms are filed.

"After somebody closes, forms get filed with the city so that we can send the tax and utility bills to the appropriate place," Anderson said. "So, it would be very rare that we would hear something like this in advance."

Residents Say They've Tried to Get Answers

While the city hasn't received direct contact from Hyperscale Data, residents living near the facility have been reaching out to the company themselves, but have never been able to get answers.

News Channel 3 called Hyperscale on Tuesday and were told by an automated line that someone would follow up. The lack of direct communication between the company and the community has left neighbors in the dark about what they're dealing with.

Noise Has Made Life Unbearable

Terry Raab, a Dowagiac resident living near the facility, says the noise from Hyperscale's operations has become increasingly difficult to tolerate, especially during the summer months when residents typically like to have their windows open.

"In the summertime, we like to have our windows open, and it's hard when you're listening to that all the time," Raab said.

The issue has gone viral on social media, with WWMT News Channel 3 sharing video and audio footage of the facility's endless whirring. The constant hum is enough to make viewers hit the mute button — just imagine living right next to it.

"We loved it here, but now, I don't know," Raab said, describing how the noise has fundamentally changed his quality of life for the worse.

Property Value Concerns Mount

Beyond the unreasonable racket, data centers bring a host of other concerns for nearby residents. They require massive amounts of energy to operate, which can cause electricity shortages in surrounding areas and increase nearby residents' utility bills. They also consume vast quantities of water to cool overheating systems — potentially up to 5 million gallons per day — enough to supply a town of up to 50,000 people.

For Raab, though, it has ultimately changed his way of life for the worse, and he's increasingly worried about what the expansion will do to his home's value.

"If we want to resell the house, who's going to want to buy the house with that noise?" Raab said. "No one's going to want to buy. They'll be like 'nah, we ain't moving there.'"

Longtime resident Jerry Dodd has expressed similar concerns, saying he's never heard the site this loud and wishes the company would put up a sound-reducing wall.

"People get out of their cars and they say, 'do you have to listen to that?'" Dodd said.

The Bigger Picture: Communities Push Back

Dowagiac isn't the only community grappling with this issue. Across the Midwest, rural towns are increasingly resisting the rapid expansion of data centers, citing concerns about noise, light pollution, environmental impacts, and straining local infrastructure.

In Wisconsin, Manitowoc County's Planning and Parks Commission unanimously recommended a one-year moratorium on data center permitting, following resolutions from three rural towns that expressed health and safety concerns. County Board Chair Tyler Martell said much of the feedback from constituents has been against the idea of a data center coming to the county, citing environmental fears about potential water and energy use.

Similarly, in Michigan, Portage City Council approved a year-long moratorium on data centers and battery storage facilities, with officials citing concerns about rapid development and the need for communities to develop proper zoning regulations before allowing such facilities.

What's Next for Dowagiac

The Dowagiac City Council will likely need to address these concerns at its next meeting, especially as Hyperscale moves forward with its expansion plans. The company's automated response to media inquiries suggests it may not prioritize direct communication with local residents.

As demand for AI and data processing continues to rise, communities like Dowagiac will need to find ways to balance economic development with preserving the quality of life for their residents. The endless whirring of Hyperscale's servers may bring economic benefits to the broader region, but for those living right next to it, the noise is becoming impossible to ignore.

Source

"Wild how people are for this & it's only making it worse for everybody," one Instagram commenter said after seeing the viral footage of the facility.

"Wild how people are for this & it's only making it worse for everybody," one Instagram commenter said after seeing the viral footage of the facility. Another added, "This will ruin anyone's hearing over time."