Hyperscale Data Inc. finalizes data center campus expansion in Dowagiac

In a June 26 press release, Hyperscale Data Inc. — the company that runs the hyperscale data center in Dowagiac — announced that it has completed the process of acquiring an additional 48.5 acres of land to expand its current data center operations. The company first announced their intentions to buy the land and expand operations in early April in “southwest Michigan,” as they stated. Many concluded that to be an extension of their property in Dowagiac. 

Soon after that expansion was initially announced, Dowagiac Mayor Patrick Bakeman and City Manager Kevin Anderson said the city had no more information than the public about the property. This prompted Mayor Bakeman to write the company an open letter on April 1, giving Hyperscale 45 days to provide the city with more information. On the final day, Bakeman said the company agreed to schedule a meeting “with the expectation that we will meet within the week.” Bakeman has provided no further updates on that meeting. 

Watershed Voice reached out to Mayor Bakeman seeking an update on the status and content of that meeting but did not receive a response before publication.

Since then, on May 26, law firm Liddle Sheets filed a class action lawsuit alleging excessive noise and disturbance from the data center has negatively affected nearby residents. The data center sits within 300 feet of a street with over thirty residential homes.

The company says it has “completed the previously announced acquisition of 48.5 acres of forested land to expand its Michigan AI Data Center,” bringing its total acreage in Dowagiac to 83 acres and more than doubling the size of its campus.

“We are thrilled to complete this acquisition and look forward to growing the Michigan Campus in an efficient and responsible manner,” said Milton “Todd” Ault III, executive chairman of Hyperscale Data Inc. .

Hyperscale stated that the new land is forested so future development of the site would likely require clearing portions of the forested land. 

In a separate press release issued by Hyperscale on Monday, June 29, it announced its intentions to begin releasing monthly “Michigan AI infrastructure progress reports” to provide investors with greater visibility into the progress of its Michigan campus. The reports are mainly aimed at updating investors on the status of the company, its finances, and those two items in relation to the Michigan campus. The release focused on investor transparency and did not address communication with residents or city officials regarding local concerns.

Hyperscale added that as of June 24, it holds approximately $98.4 million in cash, restricted cash, Bitcoin, and silver on its balance sheet, according to a press release on Hyperscale’s website. 

“The establishment of the Michigan Reserve Account reflects the company’s commitment to separately identify capital dedicated to the continued development of the Michigan Campus,” Hyperscale Data Inc. wrote. 

Inside their campus they also manufacture humanoid robots, as stated on Hyperscale’s website. Hyperscale Data Inc. holds the highest partner tier with a company by the name of AGIBOT PTE. LTD. (“AGIBOT”), which is a robotics company based in Shanghai, China, and Hyperscale is the “first American company to reach it,” as the company stated in a press release. AGIBOT describes itself as one of the world’s leading humanoid robotics companies.

City to host forum

At its next City Council meeting, the City of Dowagiac will be hosting a special forum during which Hyperscale Data Inc. is expected to be in attendance providing updates on their expansion in the city. 

The meeting will be held at the Dowagiac Middle School Performing Arts Center, 57072 Riverside Dr. at 6 p.m. on Monday, July 13. There will be an agenda item entitled “Data center forum” and representatives from Alliance Cloud Services — otherwise known as Hyperscale Data Inc. — will give a presentation, according to the city. Hyperscale representatives are expected to remain present during the public comment portion of the meeting, according to a Facebook post from the City of Dowagiac. 

This appears to be the first publicly scheduled in-person meeting between company representatives and Dowagiac residents.

Maxwell Knauer is a staff writer for Watershed Voice.