READ THE STATEMENT
Hyperscale Data Stopped the Hum in Dowagiac. Its Statement Didn’t Mention the Neighbors.
(Mining stopped under an agreement with the company’s new AI customer, the release says. The 340-megawatt expansion is still planned.)
By Ethan Ward · Oct. 18, 2026
Hyperscale Data runs a data center in Dowagiac, Michigan, through its subsidiary Alliance Cloud Services. Neighbors sued over the noise in May. At a city council meeting July 13, CEO William Horne said he didn’t want “the neighbors to feel trapped.” On Sept. 2, the company announced it had shut off bitcoin mining at the site, and neighbors told ABC57 the hum was gone.
THE STATEMENT · HYPERSCALE DATA · SEPT. 2, 2026 · PRESS RELEASE
“We are pleased with the continued progress we are making at the Facility,” stated William Horne, the Company’s Chief Executive Officer. “The immediate shutdown of the Bitcoin mining operations allows our team to focus the Facility’s power, infrastructure and resources in preparing the Facility for its usage by our Customer. (1. The release says the company and its new AI customer agreed to end mining immediately. It doesn’t mention the noise, the neighbors, or the lawsuit.)
Further, as the expansion of the Facility to support AI computing infrastructure progresses, it is my belief that our stockholders will be rewarded as the Company’s market capitalization, which currently trades at a significant discount to other data center companies, begins to normalize in comparison to its available contracted power capacity.” (2. The customer will use no more than about 20% of the site’s planned 340 megawatts, the release says. The rest is for future expansion.)
Hyperscale Data’s press release on PR Newswire. The dashed line marks where the page is cut between the headline and the quote.
SCREENSHOT: PR NEWSWIRE, SEPT. 2, 2026
Our notes
At the July 13 meeting, Horne said, “So anything that we can do to decrease the sound level we’re going to,” WSBT reported. He offered to buy nearby homes at fair market value and cover moving costs, and said a permanent wall would go up on the Louise Avenue side, Watershed Voice reported. On Sept. 5, one homeowner told WNDU he hadn’t heard back in weeks.
“I can hear the birds now too, it’s insane,” resident Ami File told ABC57 after mining stopped. Horne couldn’t say how loud the planned AI operations would be, the station reported. Another neighbor, Regis Elrod, told WNDU she still objects to nightly security rounds, construction noise, and a street light.
Dowagiac’s noise ordinance caps residential areas at 65 decibels by day and 55 overnight, according to the residents’ complaint. The city issued violation notices, which Hyperscale challenged, and in August the council voted $10,000 for a sound engineer. A Hyperscale representative told the council Aug. 24, “we are confident that we are below the current ordinance both at nighttime and daytime.” We found no published results from the city’s study.
In its Aug. 19 quarterly filing, Hyperscale said of the lawsuit, “We believe the claims are without merit and intend to vigorously defend the action.” On Sept. 22, a federal magistrate judge ordered the data center opened for inspection within 14 days.
What you can do
In Dowagiac, noise complaints go to the city, not the state. Use the city’s Citizen Request form and choose Code Enforcement, or call City Hall at 269-782-2195.
The City Council meets the second and fourth Mondays of the month at 7 p.m. at City Hall, 241 S. Front St.
Neighbors with questions about the lawsuit can reach the residents’ lawyers, Liddle Sheets, at 313-392-0015.
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How we reported this
The statement is from Hyperscale Data’s Sept. 2 press release. We read the company’s Aug. 19 quarterly filing, the court docket in Valenzuela v. Alliance Cloud Services, and reporting by ABC57, WNDU, WSBT, and Watershed Voice.
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