Michigan residents sue data center over noise pollution

Data centers, particularly those powering AI, are facing increasing scrutiny over issues such as high energy and water consumption. But residents living near a data center in Dowagiac, Michigan, are concerned about something else: noise. For the past two years, a facility owned by Alliance Cloud Services LLC, a subsidiary of Las Vegas-based Hyperscale Data, has disturbed its neighbors with incessant noise. One resident described it as a “high-pitched whining sound” similar to that of a clogged vacuum cleaner – one that runs loudly day and night in your own living room. Another said the situation was like a scene from a movie where someone is tortured by sound, adding: “That’s basically what it is.” In a desperate attempt to restore the peace and quiet they once enjoyed, local residents sued Alliance Cloud Services, accusing it of failing to install adequate soundproofing equipment and creating “excessive noise beyond its property.”

The building in question has been an industrial facility of one sort or another for decades, operating without any major complaints from nearby residents. But then, in 2021, it was transformed into a cryptocurrency mining center. Three years later, in 2024, it began to create an unbearable ruckus that hasn’t stopped since. In March, Dowagiac officials approved the city’s first-ever industrial noise ordinance with limits of 65 dB during the day and 55 dB at night. The establishment has previously been fined for exceeding these limits, although Hyperscale disputes the findings. Meanwhile, the noise continues 24 hours a day, and affected residents have claimed it is so disruptive that they don’t even want to open the windows or spend time outside in the yard.

Some of the noise comes from a vented wall that’s part of a cooling system, which Hyperscale CEO William Horne says is the main source of disruption. In July, at a specially called board meeting to address the current issue, Horne told those affected that the company planned to reorient the cryptocurrency operations site toward AI computing and advanced robotics, adding that the ventilated wall would be sealed, which should reduce noise levels. Horne said that “if they are still not happy and feel that their house is not nice, then we will buy their property from them.” Buying homes from willing sellers has become a common strategy for some data center developers, while others rely on eminent domain, a legal procedure that allows authorities to compel the sale of private property for public use.

But many residents don’t want to leave their longtime family home and don’t want to be pressured to move. One resident, Marjorie Finn, said her home has been in her family for about 100 years, adding that all of her friends and support systems are nearby. Another resident, Lindy Valenzuela, said the noise was so loud she couldn’t even stand outside for more than a few minutes without getting a headache.

The lawyer acting on behalf of the residents said the suit could help force Hyperscale to become a better neighbor. In a statement to local media, Hyperscale said it took residents’ concerns “seriously” and planned to work to reduce noise levels. He added that he “remains committed to being a good neighbor.”

Residents of Dowagiac are not the only ones who have to put up with constant noise from data centers. A number of Elon Musk’s SpaceXAI (formerly xAI) data centers in Mississippi have also been accused of disrupting the lives of people living nearby, leading to a class-action lawsuit over noise. It claims that since mid-2025, Southaven residents have experienced “near constant noise,” allegedly caused by the gas turbines powered by xAI and used to power nearby data centers. Coming from nearly 60 turbines, the lawsuit describes the noise as sounding like a jet engine. Residents say the situation is causing “mental anguish and emotional distress” and are demanding compensation for months of disruption and harm to health, declining property values ​​and an injunction ordering SpaceXAI to reduce noise. A separate lawsuit over the same gas turbines alleges air pollution violations and operation without required permits.

Another case brought by eastern Oregon residents against a data center operator – in this case Amazon – shows that lawsuits can produce results. In 2024, residents alleged that wastewater linked in part to Amazon’s data centers in Morrow County contributed to nitrate contamination of nearby groundwater, making well water unsafe for drinking and cooking. The lawsuit demanded health monitoring, access to drinking water and cleaning to make well water safe again. In an out-of-court settlement in March, Amazon denied any wrongdoing, while agreeing to pay $20.5 million to help resolve the situation.

Living near a data center can be difficult as it can present a whole host of problems. As AI accelerates the growth of data centers globally, companies could keep locals engaged and avoid costly legal battles by being transparent with residents and working collaboratively from the start.