A planned AI-related expansion at a Michigan data center is colliding with a more immediate problem for nearby residents: relentless noise.

People living near the facility in Dowagiac have filed a federal class-action lawsuit, alleging that noise from the site is so constant and severe that it has upended daily life at home.

What's happening?

Detroit-based law firm Liddle Sheets P.C. announced Tuesday that it is representing residents who live within a 1-mile radius of Alliance Cloud Services LLC's Dowagiac, Michigan, data center, Michigan Advance reported.

The complaint, filed in federal court in western Michigan, says the facility's nonstop operations have interfered with locals' ability to use and enjoy their property.

According to the lawsuit, the noise is continuous — 24 hours a day, seven days a week — and allegedly stems from inadequate soundproofing at the site. 

The complaint says the company failed to install sufficient sound-mitigation equipment to keep noise from escaping and that a well-designed, well-maintained facility would have taken steps to limit those impacts beyond its property line.

One named plaintiff, Lindy Valenzuela, said in the complaint that the conditions have changed how her family lives at home. She said the noise affects time spent outside and can even be heard inside the house with the windows shut.

The case comes as Alliance Cloud Services' parent company, Hyperscale Data, Inc., shifts the Michigan site away from Bitcoin mining and toward AI-related operations. In March, the company said it had secured an agreement to acquire an additional 48.5 acres in Dowagiac, a move that would more than double its land there.

Why does it matter?

A nonstop industrial sound can interfere with sleep, increase stress, limit time spent outdoors, and make it harder for people to enjoy their homes and yards.

Artificial intelligence data centers can also consume enormous amounts of electricity and water, potentially straining local infrastructure, driving up costs, and increasing pollution if that power comes from dirty energy sources.

Communities may welcome jobs and investment, but they can also face tradeoffs tied to noise, land use, water demand, security concerns, and energy bills.

What's being done?

The plaintiffs are seeking class-action status on behalf of people living within a mile of the facility, aiming to hold the company accountable for what they describe as excessive offsite noise. Their legal argument centers on the claim that the problem could have been mitigated through better soundproofing and facility design.

Local officials have also raised concerns about the company's expansion process. In an April 1 open letter, Dowagiac Mayor Patrick Bakeman said Hyperscale Data, Inc. had neither sought nor obtained the approvals required for its planned expansion.

Meanwhile, Hyperscale Data, Inc. has indicated it sees strong business potential in the Michigan site. On May 11, the company said potential customers were showing strong interest and that it expected to sign power and infrastructure lease agreements in the coming weeks and months.

"These people had no say in the introduction of this large and loud data center into their otherwise peaceful community," Laura Sheets, the lead lawyer on the case, said. "This community just wants to be able to enjoy their homes, and they want the data center to deal with the noise and be a better neighbor."

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