Video Evidence Emerges as Dowagiac Residents Push Back Against Noisy Hyperscale Data Center

Residents in Dowagiac, Michigan, are growing increasingly frustrated with the incessant noise from a nearby data center, and now video evidence captured by WWMT News Channel 3 shows exactly what they have been living through.

On Instagram, WWMT News Channel 3 (@newschannel_3) shared video and audio of Hyperscale Data's facility, which supports artificial intelligence operations and bitcoin mining. The endless whirring is enough to make any viewer hit the mute button — just imagine living right next to it.

Terry Raab told the outlet that he no longer wants to open his windows in the summer because of the insufferable noise, and he's growing increasingly concerned that Hyperscale's potentially expanding operations will cause his property value to plummet.

"If we want to resell the house, who's going to want to buy the house with that noise?" Raab asked WWMT. "No one's going to want to buy."

Beyond the unreasonable racket, data centers bring a host of other concerns. They require a significant amount of energy to operate, which can cause electricity shortages in surrounding areas, increase nearby residents' bills, and disproportionately contribute to pollution.

According to the International Energy Agency, data centers accounted for 1.5% of global electricity consumption in 2024. With tech companies rapidly scaling up their AI output, this is expected to worsen in the coming years.

Meanwhile, data centers also use vast quantities of water to cool overheating systems. The Environmental and Energy Study Institute noted that large data centers can consume up to 5 million gallons per day, enough to supply a town of up to 50,000 people.

Not only does that strain freshwater supplies for nearby residents, but it can also negatively affect crop growth and harm aquatic habitats.

For Raab, though, it has ultimately changed his way of life for the worse.

"We loved it here, but now, I don't know," he told WWMT.

The video has captured the community's growing anger as Hyperscale Data announced plans to more than double its campus, citing the exploding need for AI.

In response to an announcement and some confusion about a data company's plans to expand its operations in Southwest Michigan, the mayor of the City of Dowagiac has penned an open letter to the company's CEO.

Artificial intelligence and bitcoin company, Hyperscale Data, said in press release this week it's reached an agreement to more than double its campus, saying the need for AI is exploding. However, City Manager Kevin Anderson told News Channel 3 on Tuesday that 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.

Additionally, 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. Anderson also said the city has yet to receive any development proposals from Hyperscale.

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

To address the lack of communication and transparency, Dowagiac Mayor Patrick M. Bakeman has released an open letter directed at Hyperscale Data CEO Will Horne.

The letter is as follows:

April 1, 2026

Open letter to Will Horne, CEO, 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. 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.

Last year, you made a public announcement that you intended to greatly expand your data center operations in the City of Dowagiac. Earlier this week, you announced you had reached an agreement to acquire more land to expand your campus. However, 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.

I can cite many examples throughout Dowagiac where this is occurring. 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.

That expectation is not being met. We are not getting the transparency we need from you. We are not getting the information we need to address the concerns of our residents.

We expect that you will be able to submit plans within 45 days so that we can address the concerns that continue to be raised because of your multiple press releases.

We look forward to hearing from you soon.

Bakeman, who owns and operates a barber shop in Dowagiac, is a first-term mayor elected last year, replacing an incumbent who served for nearly three decades. His city, about an hour from Kalamazoo and 20 miles from the Indiana state line, is home to about 5,700 residents.

A Hyperscale Data subsidiary purchased the 617,000-square-foot industrial building, the Business Center of Southwestern Michigan, in 2021. It has used a portion of the property for cryptocurrency mining and now intends to scale up data center operations to meet a growing need for processing power for AI and machine learning, according to its public announcements and regulatory filings.

But city officials have said they were caught off guard by Hyperscale Data's expansion announcements, and received no formal development plans or permit requests from the company that they can use to answer residents' questions.

Bakeman called on Hyperscale Data to immediately announce which additional property it claims to be purchasing.

"That will end the needless speculation that has run rampant in our community. While you are likely to have NDAs with the property owner, I trust that those agreements can readily be terminated by mutual consent," he said.

The city has spent several months preparing for a plan submission from the company, with leaders spending time and money educating themselves on the issues surrounding data centers in collaboration with experts.

Dowagiac has also implemented enforceable decibel levels in its noise ordinance, following complaints from residents living near the data center building.

"We are ready to review your plans to ensure that you're on track to achieve full regulatory compliance. We expect that you will be able to submit plans within 45 days so that we can address the concerns that continue to be raised because of your multiple press releases," Bakeman said.

Requests for comment to Hyperscale Data sent by email and left by phone with what appeared to be an AI chatbot were not immediately returned.

The letter represents the latest flashpoint in tensions between Michigan communities and data center developers, who have fully embraced Michigan as a potential landing spot for their warehouses full of computer servers over the last year.

At 340 megawatts, the Dowagiac data center expansion would be significantly smaller than the 1,400-megawatt project for ChatGPT creator OpenAI and cloud computing giant Oracle under construction in Saline Township, south of Ann Arbor, or the proposed data center for Google in Wayne County's Van Buren Township, rated at 1,000 megawatts.

But it is still a significant power draw and could strain other public services.

Hyperscale Data has said it has an "agreement in principle" with an unnamed local utility to meet the electricity demand. Indiana Michigan Power serves the facility but said Wednesday it does not have any "agreements or commitments" in place to provide the company with the amount of power in question.

Data centers can also require significant amounts of water for cooling, depending on the systems employed, but it is unclear if that would be the case in Dowagiac.

"We stand ready to listen," Bakeman said. "However, no proposal has been submitted and no decisions have been made. It is your responsibility to bring forward a clear and transparent plan."