Dowagiac council approves $10K for sound study at data center

During Monday’s Dowagiac City Council meeting, council members took their first formal action toward enforcing the city’s noise ordinance against the Hyperscale Data Inc. data center.

The facility is operated by Alliance Cloud Services LLC, a subsidiary of Hyperscale Data Inc.

The data center, located at 415 E. Prairie Ronde St., has drawn months of complaints from nearby residents over noise and other concerns.

During the August 10 meeting, council members unanimously approved $10,000 to “authorize the City’s Legal Counsel to contract with a certified sound engineer” to conduct a sound study related to alleged violations of the city’s noise ordinance.

While some residents thanked council members for taking the step, others who have regularly attended meetings and raised legal and environmental concerns said they remained dissatisfied with the city’s response to the data center.

The sound study follows the council’s July 13 meeting, which was moved to the Dowagiac Middle School Performing Arts Center because of the expected turnout. Hyperscale representatives discussed the company’s operations and expansion plans and answered questions from residents.

Separately, two Dowagiac residents represented by Liddle Sheets P.C. have filed a proposed federal class-action lawsuit against Alliance Cloud Services LLC, a Hyperscale Data subsidiary that operates the facility. The lawsuit alleges that noise from the data center interferes with nearby residents’ use and enjoyment of their properties and has damaged property values.

The city has issued notices of noise ordinance violations related to the facility, which Hyperscale has challenged. The sound study will serve as part of the city’s case building against Hyperscale’s alleged violations.

Hyperscale considering sale

On Tuesday, August 11, Hyperscale announced that its board is reviewing strategic alternatives for its Michigan data center, including a potential sale or lease of part or all of the facility. The company said the review is intended to “maximize stockholder value.”

The release states, in part:

“The strategic review will consider a range of alternatives, including a potential sale or lease of a portion or all of the Company’s data center for cash, a strategic investment or joint venture or continued ownership and development of the assets, among other measures. The Company has begun discussions with a major investment banking firm regarding these strategic alternatives. There is no predetermined outcome, and there can be no assurance that the review will result in any transaction.”

Maxwell Knauer is a staff writer for Watershed Voice.