Hyperscale Data Center in Dowagiac stops bitcoin mining operations

DOWAGIAC, Mich. (WNDU) - Bitcoin mining operations at the Hyperscale Data Center in Dowagiac ceased on Sept. 1, ending a constant hum residents have reported for months.

Hyperscale has been involved in a class action noise complaint since May.

Regis Elrod, who has owned her home across the street from the facility for almost eight years, described the previous noise level.

“It was very, very loud, uncomfortably loud, to where you couldn’t have a conversation,” Elrod said.

Elrod said she stopped visiting her friend down the street because it was too loud.

While she’s grateful the constant hum has stopped for now, she’s still frustrated with the nightly security rounds along the street, the construction noise and the facility’s street light shining bright into her room at night.

Billy Finn lives across the street from the center as well. He said Hyperscale used to implement temporary night shutdowns so the noise level was quieter, but didn’t believe it was genuine.

““I kind of perceived it that they were just trying to appease the people on the street,’ he said. ”They were kind of forced to do something to start showing some type of consideration for the people on the street.”

Residents weigh options amid buyout offers

Families near the facility have raised concerns about the future of their homes. Finn’s wife’s family has lived in their home for three generations.

Hyperscale offered fair market value and moving expenses to everyone along the street. But many don’t think that’s fair.

“I don’t think they could give us the amount of money that they would have to do in order for us to go someplace else and buy a house where we wouldn’t have to worry about a mortgage,” Finn said.

Elrod said she has put time, money and effort into renovating her home and wants to follow through on those plans.

One property owner on the street told 16 News Now he did not know about the Hyperscale Data Center when he moved in last year. His family now wants to sell the property to Hyperscale. However, he said he has reached out to them about selling but has not received a response in weeks.

Shift to AI capacity

Hyperscale said it stopped bitcoin operations to expand AI capacity at the Dowagiac facility, fulfilling an agreement with a California-based neocloud provider. The agreement has an initial 10-year term. The California company was not named.

Neighbors are still unsure of what the future holds.

Both Elrod and Finn said they hope Hyperscale and the city of Dowagiac will be more transparent with them.

Elrod especially wants Hyperscale to show locals they will invest in the future of the community and not diminish the value of their home.

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