EPA proposal could reduce public input on some data center permits as Dowagiac debate continues

Just days after hundreds of Dowagiac residents packed a City Council meeting to question Hyperscale Data Inc. executives about noise from the company’s data center, the U.S. Environmental Protection Agency is proposing a rule that could reduce opportunities for public input on some future industrial permits, one that would include many data centers. 

According to reporting by NBC news, the EPA has proposed eliminating a federal requirement that states provide a 30-day public comment period before issuing certain air permits for facilities the agency classifies as “minor sources” of pollution. Instead of it being federal law, states would individually decide whether public comment is offered. 

The proposal comes as the Trump administration has pushed to accelerate artificial intelligence infrastructure across the country. Right now, more than 1,500 data centers are in some stage of development nationwide, according to a Pew Research Center analysis cited by NBC News. 

Data centers have become increasingly controversial in communities across the country—specifically in Michigan—where residents have raised concerns about noise, lighting, diesel generator emissions, and declining property values. 

Those concerns have become familiar in Dowagiac. 

For months, residents living near Hyperscale Data Inc.’s facility at 415 E. Prairie Ronde St. have urged city officials to address persistent noise they say comes from the company’s day-to-day operations. The company, however, claims the bulk of the noise is from their cryptocurrency mining operations which CEO William Horne says will be shut down within the next three months. The city has issued notices alleging violations of its noise ordinance, which Hyperscale is contesting in court. A proposed class-action lawsuit filed on behalf of residents living within one mile of the facility also remains in its early stages. 

At Tuesday night’s City Council meeting, hundreds of residents attended the company’s first public presentation since the controversy began. During the meeting, Horne said the transition away from cryptocurrency operations will result in a shift to focus on artificial intelligence computing and humanoid robotics. Horne also said the company plans to construct a permanent sound wall along the Louise Avenue side of the property. Horne also continuously restated his offer to purchase nearby homes of disgruntled residents at “fair market value” and cover moving expenses. 

The EPA proposal would not eliminate local public meetings such as the one held Tuesday in Dowagiac. Instead, it would affect whether states must provide public comment opportunities during the permitting process for certain industrial facilities before permits are issued. 

Environmental groups told NBC News the proposal could reduce one of the few formal opportunities residents have to review permit applications and share their concerns before projects move forward in their communities. 

The EPA, however, said the proposal is intended to reduce administrative burdens and give state and local agencies more flexibility. 

“This rulemaking is intended to reduce administrative burden and responsibly speed up permitting, supporting American economic development and energy dominance,” the agency said in a statement provided to NBC News.

The agency also said permits covered by the proposal are generally associated with “relatively low emissions and limited environmental impact.”

It is not immediately clear whether the proposed rule would affect Hyperscale’s Dowagiac facility or any future expansion plans there. 

The EPA has opened a 45-day public comment period on the proposal and will hold a public hearing later this month.

Maxwell Knauer is a staff writer for Watershed Voice.