Bakeman hears from Hyperscale, but key questions remain as Paquette hosts Dowagiac data center town hall

As residents continue pressing for answers about Hyperscale Data Inc.’s expansion plans in Dowagiac, Mayor Patrick Bakeman says he has made contact with the company’s CEO, while State Rep. Brad Paquette hosted a virtual town hall to discuss the proposed development.

Paquette, R-Niles, said he invited Bakeman, Dowagiac City Manager Kevin Anderson and representatives from Hyperscale Data to participate in the town hall, but none attended. Paquette said he called the company five times and sent two emails but did not receive a response.

On the same day, Bakeman provided an update on the 45-day deadline he gave Hyperscale Data CEO William B. Horne to provide clarity about the company’s plans in Dowagiac.

Bakeman’s statement read:

“Forty-five days ago I asked Hyperscale Data, Inc. to contact me directly within 45 days. The company’s CEO Will Horne has now done that and I am sharing this update today as those discussions begin moving forward.

“A meeting is currently being scheduled, with the expectation that we will meet within the week as the date, time and location are finalized.

“I know this community wants what is best for Dowagiac, our neighborhoods, our jobs and our future as a community.

“I said from the beginning that I would be open and honest with the public and that commitment has not changed.

“As more information becomes available, I will continue to keep the community updated.”

Hyperscale Data, based in Las Vegas, currently operates a data center at 415 E. Prairie Ronde St. in Dowagiac. On March 30, the company announced it had entered into an agreement to acquire approximately 48.5 additional acres in southwest Michigan to expand its operations, and meet growing demand for artificial intelligence and high-performance computing.

The company has not publicly disclosed the location of the land, prompting concern from local officials and residents. Bakeman’s April 1 open letter to Horne demanded the company identify the property and submit a clear development proposal within 45 days.

Although many of those questions remain unanswered, Bakeman said contact has now been made and a meeting is expected within the coming week.

Paquette town hall draws skeptical residents

About 30 people, most of them Dowagiac residents, attended Paquette’s virtual town hall Thursday evening to discuss the proposed expansion.

“The goal of this is just to ignite further gatherings, and also give us some insight as to what we can do to be helpful to drill down into what is true and untrue about data centers,” Paquette said during the introduction of the meeting. 

The town hall opened with a presentation from Anderson Economic Group COO and Director of Public Policy and Economic Analysis Sarah Thiele, who outlined what she described as the economic benefits data centers can bring to local communities.

Thiele compared the economic impact of a data center to hosting two additional Detroit Lions playoff games each year. She said a small data center employing 25 full-time workers can generate 12 additional jobs and roughly $1 million in annual payroll for local households.

Thiele described data centers as a “long-term economic development opportunity for Michigan.”

Her presentation was met with sharp criticism from attendees, who questioned the assumptions behind the report and raised concerns about transparency, environmental impacts, and what they described as misleading public statements from Hyperscale Data.

Anderson Economic Group is a Michigan-based consulting firm that conducts economic and public policy analyses for private companies, industry groups, and government clients. Thiele said the firm prepared the report to evaluate the potential economic impacts of data center development in Michigan.

Data centers are frequently criticized for creating relatively few permanent jobs compared with the scale of their energy and infrastructure demands. While projects can generate significant short-term construction and electrical work, many long-term positions require specialized expertise and may not be filled locally.

Thiele’s presentation also claimed data centers can create a number of “indirect” jobs. When asked to clarify what those might be, she gave an example of the donut shop down the street that is seeing increased traffic as a result of the data center needing to hire an additional worker. She also claimed additional trades work for electricians, pipefitters, and other skilled tradespeople.

Paquette says state is considering broader regulation

Paquette said he recently co-sponsored House Bills 5594, 5595 and 5596, a bipartisan package introduced by Rep. Dylan Wegela, D-Garden City, that would place a statewide moratorium on new data centers until April 1, 2027.

The bills would temporarily prohibit local and state agencies from issuing permits and other approvals for new facilities, and would prevent the Michigan Public Service Commission from approving utility agreements tied to new data centers. The legislation also includes enforcement provisions and is tie-barred, meaning all three bills would need to pass together to take effect.

Paquette was one of 10 co-sponsors from both parties to support the package. As of this week, the bills had been referred to the House Committee on Government Operations, not having received a hearing or advanced further.

Paquette also said he supported removing language from a separate House bill that would have designated data centers as “critical infrastructure.” He said he opposed granting data centers special protections that could limit public oversight.

When asked what his next step would be regarding the Dowagiac project, Paquette said he would return to the “invite board,” and continue seeking answers from local officials and the company.

Paquette attended Dowagiac City Council’s most recent regular meeting, where he invited Bakeman and the rest of the council to participate in the town hall.

Throughout the discussion, Paquette emphasized he is wary of large-scale data center development and believes communities should have greater oversight before projects move forward.

James Lawrence, a Cass County Commissioner, was the only other elected official to attend the virtual meeting.

Maxwell Knauer is a staff writer for Watershed Voice.