Hyperscale CEO hears residents concerns over expanding Dowagiac Data Center

DOWAGIAC, Mich. -- Hyperscale Data Centers says it plans to stop bitcoin mining at its Dowagiac facility within the next three months and transition to artificial intelligence computing and robotics, a move company leaders say will significantly change operations at a site that has drawn in a class action lawsuit over noise pollution.

The company's current bitcoin mining operation includes an exposed wall that allows natural air flow to aid in cooling computers inside the building.

CEO William Horne confirmed that the cooling system is the primary source of the noise that has frustrated nearby residents.

Dowagiac city officials have cited Hyperscale for violating the city's noise ordinance. Horne said the company hired independent sound engineers to conduct measurements while its mining equipment was temporarily shut down.

According to Horne, those readings were close to the city's noise limits, suggesting other sources also contribute to the area's overall sound levels.

When asked if he would feel comfortable living nearby a data center that presented decibel readings over the city’s noise ordinance restrictions, Horne compared the situation to the traffic noise near his home in Washington state.

"I don't like it, but there's nothing I can do about it," Horne said.

As part of the company's transition away from bitcoin mining, Horne said the exposed cooling wall will be sealed. He expects this change to reduce the sound generated by the facility.

Mayor Patrick Bakeman said noise, trust and being a good neighbor were recurring themes throughout the public meeting.

"When that noise comes down and the neighborhood is happier, I think those actions will speak for themselves," Bakeman said.

The meeting follows an open letter Bakeman sent to Hyperscale in April, urging the company to be more transparent about its operations and future plans in the city. Bakeman said this meeting was a first step in building trust with the community.

Hyperscale recently purchased 48 acres adjacent to the facility, which Horne said will serve as a buffer between the data center and nearby homes rather than as land for additional development.

The company also offered to purchase homes from nearby property owners and cover moving expenses for those who no longer wish to live next to the facility.

"I don't want the houses. They don't do me any good, but I also don't want neighbors that feel trapped," Horne said. "That's the only reason we put the offer out there."

Mayor Bakeman previously declined to pursue a moratorium on data centers in Dowagiac. Despite the pending class-action lawsuit, Bakeman said he does not regret that decision and remains optimistic about the company's long-term economic impact.

Hyperscale has said its planned expansion into AI computing and robotics could eventually bring about 500 local jobs to Dowagiac.