Hyperscale Data announces planned land acquisition; Dowagiac officials say they were not informed

Hyperscale Data Inc., which operates a data center in Dowagiac, announced Monday, March 30 that it has entered into an agreement to acquire approximately 48.5 acres of land in southwest Michigan, according to a company press release. 

The company said the acquisition would allow it to expand its Michigan campus and meet growing demand for artificial intelligence and high-performance computing.

Hyperscale Data, based in Las Vegas, describes itself as “anchored” by Bitcoin and operates data centers that mine digital assets while also providing colocation and hosting services for artificial intelligence and other industries.

The land would be acquired by Alliance Cloud Services, LLC, a wholly owned subsidiary of Hyperscale Data.

“This is a significant step in the right direction for ACS on its path to expanding its footprint in the Michigan area,” CEO Will Horne said in the release. “This land acquisition will give us additional space and the opportunity for future development and demonstrates the Company’s long-term commitment to Southwest Michigan and the Company’s operations there.”

The company said it expects to close on the purchase within approximately 60 days.

City response

The announcement prompted questions locally, particularly in Dowagiac, where the company already operates a data center.

City officials first responded Tuesday morning, saying they were not informed of the planned purchase and have not received any development proposals tied to it.

“The City did not know about this transaction. We learned about it the same way you did, from the press release,” the city said in a statement. “To be clear: the City has not received any permit requests or development proposals related to data center expansion.”

On Wednesday, April 1, Watershed Voice spoke with Dowagiac City Manager Kevin Anderson, who said the city has no additional information about the property.

“We don’t have any documentation identifying what property this is,” Anderson said. “We’re in the same position as the public.”

Anderson said the company is currently using only a portion of its existing 600,000-square-foot facility and that the city had expected any future expansion to occur within that building.

“There was always an understanding they would expand as power became available,” he said. “But it was assumed that expansion would happen within the existing footprint. We haven’t seen plans indicating they would purchase additional property or build elsewhere.”

He added that the city has attempted to contact the company but has not received further details.

“At this point in time, they are not discussing the property — including its location or ownership,” Anderson said.

Later that day, Dowagiac Mayor Patrick Bakeman released an open letter to the company’s CEO, Will Horne, criticizing the company’s lack of detail and calling for more transparency.

“Both announcements were vague, and you have neither applied for nor received any approvals necessary to facilitate your expansion plans. By doing this, you’ve bred uncertainty and eroded our confidence that you will do the right thing in our community.

“Here’s what’s expected of you:

“Immediately announce which property you claim to be purchasing. That will end the needless speculation that has run rampant in our community. While you are likely to have NDAs with the property owner, I trust that those agreements can readily be terminated by mutual consent.

“In response to your 2025 press release regarding your growth plans, City Council and staff have spent the last several months preparing for your plan’s submission. We’ve spent time and money educating ourselves on the issues, consulting with experts in the data center field, and enacting new legislation to protect our community, like adding specific, enforceable decibel levels to our noise ordinance. We are ready to review your plans to ensure that you’re on track to achieve full regulatory compliance. We expect that you will be able to submit plans within 45 days so that we can address the concerns that continue to be raised because of your multiple press releases.

“We stand ready to listen. However, no proposal has been submitted and no decisions have been made. It is your responsibility to bring forward a clear and transparent plan.”

As of April 2, the company has not publicly identified the location of the land. Hyperscale Data has not responded to requests for comment. Watershed Voice will continue to provide updates as more information becomes available.

Maxwell Knauer is a staff writer for Watershed Voice.