Dowagiac Residents Decry Unbearable Noise From Hyperscale Data Center as Company Announces Major Expansion

Small-Town Quality of Life Collides With Tech Industry Growth

*DOWAGIAC, Michigan* — A Las Vegas-based artificial intelligence and cryptocurrency company is looking to more than double its data center campus in Dowagiac, but local residents say the facility's noise has already become unbearable, forcing them to close their windows in the summer and fear their property values will plummet.

Hyperscale Data recently announced plans to expand its 48-acre operation in the Van Buren County city, citing the "exploding need" for AI computing power. However, residents living near the facility say they've been dealing with constant, unrelenting noise for months and have never received meaningful answers from the company.

The Noise Complaints Are Growing

Terry Raab, a Dowagiac resident who lives near the data center, has become increasingly frustrated with the facility's impact on his daily life. According to multiple news outlets, the endless whirring from the data center's cooling systems and servers has made it impossible for residents to enjoy their homes during warmer months.

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

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— Terry Raab, Dowagiac Resident

Raab told local news that the noise has fundamentally changed his relationship with his home and neighborhood. The constant hum is so intrusive that he now avoids opening windows during the summer, a simple pleasure that many homeowners take for granted.

Beyond the immediate quality of life issues, Raab is deeply concerned about what the noise means for his home's resale value.

"I worry about that, the property value, because if we want to resell the house who's gonna want to buy the house with that noise. No one's gonna want to buy. They'll be like 'nah, we ain't moving there.'"

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— Terry Raab, Dowagiac Resident

City Officials Say They Haven't Been Contacted

Dowagiac City Manager Kevin Anderson said his office learned about Hyperscale's expansion plans only after reading the company's press release, which was published earlier this week. According to Anderson, the city has never received direct contact from the company regarding the proposed expansion.

"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 city typically learns about such developments only after property transactions are complete and forms are filed with municipal offices. This means the city would send tax and utility bills to the appropriate entities at that point.

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

According to the city manager, Hyperscale doesn't use the city's electric utility for power, which adds another layer of complexity to how the city tracks such developments.

The Expansion Could Dramatically Increase Scale

Hyperscale Data has already made headlines for its ambitious growth plans. Last summer, the company announced intentions to expand from a 30-megawatt site to a massive 340-megawatt operation — the power equivalent of tens of thousands of homes.

The company's new announcement this week says it has reached an agreement to expand its campus by more than 48 acres in Dowagiac. While the company didn't specify exact locations for the additional land, it's known to operate at a business center in the city.

News Channel 3 attempted to contact Hyperscale for comment but was directed to an automated line that said someone would follow up.

Residents Say They've Been Ignored

Despite the company's stated need for AI computing power, local residents say they've reached out to Hyperscale directly but have never received meaningful responses. The lack of communication has left residents feeling frustrated and unheard.

"Wild how people are for this & it's only making it worse for everybody," one Instagram commenter said on a news post about the issue.

The concerns extend beyond noise. Data centers are known to consume enormous amounts of energy and water — the Environmental and Energy Study Institute noted that large data centers can consume up to 5 million gallons of water per day, enough to supply a town of up to 50,000 people.

According to the International Energy Agency, data centers accounted for 1.5% of global electricity consumption in 2024, a figure expected to worsen as tech companies rapidly scale up AI output.

What's Next

Dowagiac residents plan to continue voicing their concerns to local officials and the company in an effort to find solutions that mitigate the noise impact on the community. The tension between tech industry growth and small-town quality of life represents a growing challenge for communities across Michigan as hyperscale data centers continue to expand their footprint.

As demand for artificial intelligence and data processing continues to rise, the question remains: how do communities balance economic development with preserving the character and livability of their neighborhoods?