Hyperscale Data reports customer interest in expanding Dowagiac data center, residents still in the dark

Hyperscale Data says it’s in negotiations with potential customers seeking artificial intelligence computing capacity at its facility in Dowagiac, and believes it could sign one or more lease agreements in the coming weeks or months, according to a May 11 press release. 

The company also said it has already ordered and paid for electrical and infrastructure equipment to support about half of an initial 30-megawatt AI computing expansion.

The announcement is the latest in a series of statements by Hyperscale Data outlining ambitious growth plans for its Michigan operations, though many of those plans remain preliminary.

Equipment purchased, but no deal finalized

The most concrete development in the latest announcement is the company’s claim it has purchased equipment to support approximately 15 megawatts of the proposed 30-megawatt buildout.

A megawatt is a measure of electricity demand. Data centers require large amounts of power to operate computer servers and cooling systems. Hyperscale Data said the equipment purchase is intended to reduce deployment timelines and allow potential customers to begin operating more quickly if agreements are signed.

However, the company acknowledged negotiations are ongoing, and no definitive lease agreements have been finalized.

In addition to the proposed 30-megawatt initial phase, Hyperscale Data said its Dowagiac campus could eventually support more than 300 megawatts of total power capacity. The company said that possibility would depend on regulatory approvals, financing, engineering studies, infrastructure availability and utility agreements.

It also cautioned there is no assurance the larger expansion will be approved, financed or economically viable.

Latest announcement follows earlier questions from city officials

The new press release follows an earlier March announcement in which Hyperscale Data said it had entered into an agreement to acquire approximately 48.5 acres in southwest Michigan to support future growth.

At the time, city officials said they were not informed of the planned land purchase, and had not received any permit applications or development proposals related to a data center expansion.

Dowagiac Mayor Patrick Bakeman later issued an open letter criticizing the company for releasing broad expansion plans without providing specific details to local officials or residents.

City officials said they were prepared to review a proposal but wanted more transparency about the company’s intentions.

Company says demand for AI infrastructure is growing

In the latest release, CEO Will Horne said the company believes demand for AI computing infrastructure remains strong, and the Dowagiac site is well positioned to support large-scale computing operations powered by NVIDIA graphics processors.

The company did not identify the customers involved in current negotiations.

What this means for Dowagiac residents

The latest announcement indicates that Hyperscale Data is continuing to pursue expansion in Dowagiac and has spent money to prepare for possible growth.

But the company has not announced signed contracts, identified its potential customers, or publicly disclosed new permit applications.

For residents concerned about electricity use, noise, land development and environmental impacts, the company’s announcement did not address those issues.

Maxwell Knauer is a staff writer for Watershed Voice.