Michigan residents sue AI data center over 24/7 noise pollution, company's home buyout offer rejected

Residents of Dowagiac, Michigan, have filed a lawsuit against a data center that they allege has been generating a high-pitched whining sound — operating 24 hours a day, seven days a week — for the past two years.

Background

The data center, owned by Alliance Cloud Services LLC (a subsidiary of Hyperscale Data), was originally an industrial building situated behind a row of pine trees across the street from the most affected residents, according to ABC-affiliate WXYZ.

• Development on the site began in 2018
• It was converted into a cryptocurrency mining center in 2021
• In 2024, noise pollution began emitting around the clock

Resident Accounts

Residents describe the sound as akin to a vacuum cleaner running continuously in their living rooms.

"It sounds like someone set up a vacuum, like in your living room. And the vacuum is just... that thing needs to be cleaned... the filter is clogged up, so it's a high-pitch whining. And they just left it on and walked out." — Lindy Valenzuela, resident living across from the data center

"You've seen movies and stuff where they have somebody in a cell torturing them with sound. And that's basically what it is." — Billy Finn, nearby resident

Regulatory Response

The city of Dowagiac recently enacted an industrial noise ordinance with the following limits:

• Daytime: 65 dB
• Nighttime: 55 dB

The city has fined the data center for violations. However, Hyperscale Data is challenging the city's readings and methodology.

Company Position

Hyperscale Data CEO William Horne addressed residents at a special council meeting, stating that the site is pivoting away from cryptocurrency operations toward AI computing and advanced robotics, with a $100 million investment planned.

The company has also purchased adjacent properties to serve as a natural noise buffer and is pursuing other sound-reduction efforts.

"If they still aren't happy, and feel that their home isn't enjoyable, then we'll buy their property from them." — William Horne, CEO, Hyperscale Data

Resident Concerns

The buyout offer did not satisfy affected residents. Key concerns include:

• One family has lived in the area for nearly 100 years, with deep community ties
• Another resident has a 17-month-old baby and another child on the way, making relocation extremely difficult
• Residents questioned why the company did not act on complaints sooner, accusing it of failing to be a good neighbor

Expansion Plans

Hyperscale Data has indicated plans to expand operations in the area, but the city reports that no permit applications have been submitted.

Broader Context

This is not the first noise pollution lawsuit involving a data center:

• A Microsoft data center is facing a similar class-action lawsuit in Wisconsin from residents living within 1.5 miles of the facility
• One non-profit organization reports that infrasound (inaudible vibrations) emitted by such industrial sites can be heard and felt for hundreds of feet in surrounding areas, potentially causing negative health effects

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