Neighbors sue Michigan data center over nonstop noise as AI expansion nears

Neighbors near a Michigan data center are suing over ongoing noise as the site expands toward AI operations. The federal class-action, filed in western Michigan, accuses Alliance Cloud Services LLC’s Dowagiac facility of producing noise 24/7 and causing disruption within a one-mile radius. Liddle Sheets P.C., representing residents including Lindy Valenzuela, says inadequate soundproofing and mitigation allowed sound to escape beyond the property line. Public health and quality-of-life concerns include sleep disruption and stress from constant industrial noise.

Hyperscale Data, Inc., the data center’s parent, is shifting the Dowagiac site from Bitcoin mining to AI-related operations and plans to acquire an additional 48.5 acres. In March the company said the expansion would more than double its land, drawing scrutiny from Dowagiac officials who said approvals were not sought. The plaintiffs seek class-action status against Alliance Cloud Services to compel mitigations and accountability for offsite noise and energy impacts. Experts note that AI data centers consume substantial electricity and water, raising concerns about local infrastructure and costs as expansion proceeds.