Residents In Michigan Are Suing A Data Center Over Noise Pollution
Residents in Dowagiac, Michigan, have filed a lawsuit against Alliance Cloud Services, a subsidiary of Hyperscale Data, alleging constant noise pollution from its data center. The city has enacted an industrial noise ordinance and fined the company, which is now planning to convert the facility from cryptocurrency operations to AI computing, promising noise reduction. Many residents are unwilling to sell their homes despite the ongoing disruption.
Residents in Dowagiac, Michigan, have initiated a lawsuit against Alliance Cloud Services LLC, a subsidiary of Las Vegas-based Hyperscale Data, citing persistent and excessive noise pollution emanating from its local data center. The facility, which transitioned to a cryptocurrency mining center in 2021, reportedly began producing unbearable noise in 2024, prompting complaints from neighbors who describe the sound as a "high-pitched whining" that disrupts their daily lives and ability to enjoy their homes. Residents accuse the company of failing to install adequate soundproofing measures.
In response to the growing concerns, Dowagiac officials approved the city's first industrial noise ordinance in March, setting limits of 65 dB during the day and 55 dB at night. Hyperscale Data has since been fined for exceeding these new limits, though the company is disputing the findings. During a July council meeting, Hyperscale CEO William Horne informed residents that the company intends to repurpose the site from cryptocurrency operations to AI computing and advanced robotics, a change expected to reduce noise levels by sealing a vented wall. Horne also offered to purchase properties from affected residents if the noise issues persist, a common strategy among data center developers.
However, many long-time residents, including Marjorie Finn and Lindy Valenzuela, are strongly opposed to selling their family homes and relocating. The lawyer representing the residents believes the lawsuit will compel Hyperscale to become a more considerate neighbor. Hyperscale Data has released a statement assuring local media that it takes residents' concerns "seriously" and is committed to reducing sound levels, affirming its desire to be a "good neighbor."
The article also references similar legal battles across the U.S., including a class-action lawsuit against SpaceXAI (formerly xAI) data centers in Southaven, Mississippi, over noise from gas turbines, and a settled lawsuit against Amazon in Morrow County, Oregon, concerning nitrate contamination linked to its data centers. These cases highlight the increasing scrutiny and community opposition faced by data center developments over environmental and quality-of-life impacts.