Las Vegas Company Plans to More Than Double AI Facility Footprint in Southwest Michigan
*DOWAGIAC, Mich.* — An artificial intelligence and bitcoin company has announced plans to more than double its data center campus in Southwest Michigan, but the expansion has raised questions among city officials and residents about transparency and communication.
Hyperscale Data, a Las Vegas-based company, said it has reached an agreement to purchase 48.5 acres of land in southwest Michigan — bringing its total ownership to approximately 83 acres in the region, more than doubling its current footprint.
The company operates at a business center in Dowagiac, where it currently runs a data center facility. Upon closing of the acquisition, which the company says is expected to occur within 60 days, Hyperscale would own the additional land to support its growing AI and high-performance computing operations.
"This is a significant step in the right direction for ACS on its path to expanding its footprint in the Michigan area," said Will Horne, CEO of Hyperscale Data. "This land acquisition will give us additional space and the opportunity for future development and demonstrates the Company's long-term commitment to Southwest Michigan and the Company's operations there."
City Officials Say They Learned About Deal at Same Time as Public
Despite the public nature of the announcement, Dowagiac's city government says it was not consulted before the news broke.
City Manager Kevin Anderson told reporters the city learned about the potential real estate transaction only when the company issued a press release that came out in the morning.
"We would wait until we hear from the company. At this point, we have not heard. They will bring forward plans and at that time we would review plans," said Anderson.
The situation mirrors concerns raised about Hyperscale's previous expansion plans. Last summer, the company announced its intention to expand from a 30-megawatt to a 340-megawatt site — the power equivalent of tens of thousands of homes — yet the city has yet to receive formal development proposals.
Residents Report Noise Complaints and Lack of Response
Residents living near the existing Dowagiac facility have expressed frustration over both the noise and the company's unresponsiveness to community concerns.
Terry Raab, a local resident, told News Channel 3 that the noise from the facility has made him unable to open his windows during the summer months. He and other neighbors have reached out to the company seeking answers but have never received responses.
"The noise has made me unable to open my windows in the summer and is worried about what it will do," said Raab.
Mayor Issues Open Letter Demanding Specifics and Timeline
Addressing the lack of communication and transparency, Dowagiac Mayor Patrick M. Bakeman issued an open letter to Hyperscale Data CEO Will Horne on April 1, 2026.
The letter, which was released to the press, outlines specific expectations for the company going forward:
- 1.Immediately announce which property the company claims to be purchasing — an action the mayor says would end the "needless speculation that has run rampant in our community."
- 1.Submit detailed plans within 45 days so that City Council and staff can review the proposal and ensure regulatory compliance, including any noise ordinance requirements.
"By doing this, you've bred uncertainty and eroded our confidence that you will do the right thing in our community," wrote Mayor Bakeman.
The mayor emphasized that Dowagiac prides itself on creating an environment where businesses and neighbors can coexist successfully. He cited numerous examples throughout the city where industrial uses peacefully coexist with nearby residential properties.
"Our expectation has always been that your business, like the many previous industrial uses of your property, can safely and peacefully coexist with the people living in the homes near your business," the letter stated.
Data Center Operations Draw Community Attention
Hyperscale Data's operations have been the subject of ongoing public interest in the region. The company's subsidiary, Alliance Cloud Services (ACS), handles complex computing infrastructures and high-performance cloud computing services.
The company has also announced plans for additional facilities in other Michigan locations, including:
- Saline Township in Washtenaw County
- Lyon Township in Oakland County
- Howell Township in Livingston County
What Happens Next
City officials say they are prepared to receive and review development proposals once they are submitted. The city has spent several months preparing for potential submissions, consulting with experts in the data center field, and enacting new legislation to protect the community.
New measures include adding specific, enforceable decibel levels to the noise ordinance to address resident concerns about facility operations.
"We're ready to review your plans to ensure that you're on track to achieve full regulatory compliance," the mayor's letter stated. "We stand ready to listen."
Community Impact
The expansion represents a significant investment in Southwest Michigan's technology infrastructure. Hyperscale Data's operations support enterprise digital transformation and complex computing needs for businesses and organizations across the region.
However, the lack of formal communication between the company and local government has created tension. City officials emphasize they remain ready to work with the company once proper plans are submitted for review.
The expected closing of the land purchase within 60 days marks an important milestone for Hyperscale's expansion plans in the Midwest. Once completed, the company will have a substantial presence in Southwest Michigan, with operations spanning multiple counties and communities.