Hyperscale CEO breaks silence at contentious Dowagiac city council meeting

Tuesday night, the Dowagiac City Council and residents heard directly from Hyperscale Data Inc. representatives for the first time in a crowded Dowagiac Middle School Performing Arts Center. The venue change was due to a large expected turnout due to the agenda item: “Presentation from Hyperscale Data Inc. regarding their plans for 415 E. Prairie Ronde.”

The contentious meeting was the first time Hyperscale Data representatives have publicly addressed residents, shared their plans for the data center, and answered questions regarding the noise being emitted from the facility. 

Earlier this month, Hyperscale announced it finalized the purchase of an additional 48.5 acres adjacent to to its existing property and law firm Liddle Sheets has filed a class action lawsuit on behalf of the residents who live within a one-mile radius of the facility alleging that the excessive noise being emitted is lowering the property values of those homes. 

Before CEO William Horne began his presentation, City Manager Kevin Anderson shared that the city has issued notices of noise ordinance violations — the city’s limits are 65 decibels during the day and 55 at night. The notices were immediately challenged by Hyperscale and are currently being litigated. 

Then, after a few unrelated business items were taken care of by the council, Horne and spokesperson John Stweart addressed the audience and shared an update on their operations. Throughout Horne’s presentation members of the audience repeatedly interrupted with yelling. Mayor Patrick Bakeman stepped in and forcefully told residents to “let the man speak, it’s what he came here to do.” 

Horne began by talking about the company’s aspirations to grow and sought to establish common ground with those in attendance. 

“We have aspirations to grow [the data center] significantly more than we have it today,” Horne said, before later sharing some of his story. “I’ve lived paycheck to paycheck like many people here.” 

Those aspirations are tied to a 48.5 acre expansion that Hyperscale acquired. The land is a largely wooded area with a lake and is directly next to the data center. Horne, however, later said the land was only purchased to make the owner happy and create a natural buffer. 

“We acquired it because we wanted to make Bob [the former owner] happy and create a natural buffer, and make sure that natural buffer is maintained,” Horne said. The executive did not explain where future physical expansion would occur after stating plans to significantly grow the facility.

Horne extended the same offer more broadly as he made it clear that he and Hyperscale are willing to buy any residents’ homes who live near the data center. Horne offered to buy the properties for fair market value and cover moving costs. 

“I don’t want them to feel like they’re trapped and we’re the cause of it,” Horne said regarding the offer to buyout unhappy residents. 

Horne added that he lives near an interstate in Washington, where he lives, and claims the noise in his backyard is louder than the data center. 

“I live close to an interstate,” Horne began.,“which is louder than the facility is currently.”

Residents speak their minds

After Horne’s presentation, nearly 20 of the 300 in attendance came to the podium and had three minutes to share their thoughts on Hyperscale’s operations. 

A number of residents who live on Louise Avenue — the road directly behind the data center’s open wall that produces a large amount of its noise — shared the impact it’s had on their lives. 

“The animals have not come into the yard except for squirrels or birds,” said Gerald Dodd, who lives on Louise. “My wife does gardening and says there’s no butterflies anymore either.” 

Dodd told Horne he is not looking to get bought out, adding Horne would need to give him over three times his property value before he agreed to sell. He also shared his disappointment in the 48.5 acres purchased by Hyperscale, saying that generations have grown up playing and exploring on that property and its lake. 

A number of other residents commented on Horne’s offer to buy out homes, calling into question his “good-neighbor” commitments he made throughout the meeting. 

“Despite your amusing piece of creative writing that you published in the paper on Friday, you are not a good neighbor,” said resident Kate Whitehall, who called into question their purchase of the greenspace that Horne claims will be used as an environmental buffer. “It was already a buffer, why do you need to own it?”

Another resident, Carolyn Norris, shared similar sentiments. 

“The ultimate solution is to buy people out? That is not a good neighbor,” Norris said. “If you think this is such a great idea for Dowagiac, why haven’t you built it in your own backyard to impact your own family?”

Some residents pointed their comments at the city council, calling into question their role in this process, and why they haven’t stepped in for their constituents. 

“You are not investors, you are invaders,” Garrett Maverick began by addressing Hyperscale. He then turned to the city council, “Your scolding, your distance, and your lack of transparency on this issue is embarrassing and disqualifying.” 

The final public comment of the night left a clear message from residents as resident Peter Gibbons shared his thoughts on the Hyperscale buyout offers. 

“If somebody’s got their boot on your head, when they lift their boot off your head, they’re not a hero,” he said. 

After resident comments, council members had the opportunity to comment, however, other than answering a handful of questions raised during public comment, council members largely declined to engage with Hyperscale’s presentation or residents’ concerns. Mayor Bakeman and Councilmember Breanna Bundy thanked Hyperscale and the audience for coming. Mayor Bakeman also spoke directly to the media after the meeting.

Hyperscale commitments going forward

After the meeting, Horne spoke to the media and addressed additional questions directly. Horne said the company’s cryptocurrency mining operations would shut down within the next three months, which he says will make the noise more manageable. Horne also said there will be a permanent wall put in on the Louise Avenue side of the property to help mitigate the noise.  

The bitcoin operations will be replaced by a transition to more AI-computing and building, assembling, and training humanoid robots. Horne said the transition could create about 500 jobs, however, did not specify whether those will be long-term positions, and has no plans to guarantee any number of them go to Dowagiac residents. 

Horne again added he doesn’t want residents to feel trapped, so he is offering to buy their homes.

“I don’t want the houses, they don’t do me any good, but I also don’t want the neighbors to feel trapped.” 

Speaking with reporters after the meeting, Bakeman said the city has no direct line of communication with Hyperscale outside of formal processes but said he hopes changes to the facility will reduce noise. He said he expects the company to follow through on its commitments to do just that. 

Bakeman added he continues to oppose placing a moratorium on additional data center development, arguing that moratoriums are generally used when municipalities lack ordinances to regulate an issue. He pointed to the city’s existing noise ordinance, under which officials have cited Hyperscale for violations.

Maxwell Knauer is a staff writer for Watershed Voice.