Residents In Michigan Are Suing A Data Center Over Noise Pollution

Data centers, particularly those powering AI, are coming under increasing scrutiny over issues such as high energy usage and water consumption. But residents living close to a data center in Dowagiac, Michigan, are concerned about something else: noise. For the last two years, a facility owned by Alliance Cloud Services LLC, a subsidiary of Las Vegas-based Hyperscale Data, has been upsetting its neighbors with nonstop noise. One of the residents described it as a "high-pitched whining" similar to how a clogged-up vacuum cleaner might sound — one that's running loudly day and night in your own living room. Another said the situation was like a scene from a movie where someone is being tortured with sound, adding, "That's basically what it is." In a desperate bid to bring back the peace and quiet they once enjoyed, local residents have sued Alliance Cloud Services, accusing it of failing to install adequate soundproofing equipment and of 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 those living close by. But then, in 2021, it was converted into a cryptocurrency mining center. Three years later, in 2024, it started to create an unbearable racket that hasn't stopped since. In March, Dowagiac officials approved the city's very first industrial noise ordinance with limits of 65 dB during the day and 55 dB at night. The facility has already been fined for exceeding those limits, though Hyperscale is disputing the findings. Meanwhile, the noise continues 24 hours a day, and affected residents have claimed it's so disruptive that they don't even want to open windows or spend time outside in the yard.

Some of the noise comes through a vented wall that's part of a cooling system that Hyperscale CEO William Horne said is the main source of the disturbance. In July, at a specially arranged council meeting about the ongoing issue, Horne told those affected that the company is planning to repurpose the site away from cryptocurrency operations to AI computing and advanced robotics, adding that the vented wall will be sealed, which should reduce the noise levels. Horne said that "if they still aren't happy, and feel their home isn't enjoyable, then we'll buy their property from them." Buying homes from willing sellers has become a common strategy for some data center developers, while others have relied on eminent domain, a legal process that empowers 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 away. One resident, Marjorie Finn, said her home has been in her family for around 100 years, adding that all of her friends and support systems are nearby. Another resident, Lindy Valenzuela, said the noise is so loud that she can't even be outside for more than a few minutes without getting a headache.

The lawyer acting on the residents' behalf said the suit could help force Hyperscale to be a better neighbor. In a statement to local media, Hyperscale said it took residents' concerns "seriously" and plans to work to reduce the sound levels. It added that it "remains committed to being a good neighbor."

Dowagiac residents aren't the only ones having to endure 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, prompting a class-action suit over noise. It claims that since the middle of 2025, the residents of Southaven have suffered "near-constant noise," allegedly caused by xAI-operated gas turbines that are used to power the 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 the months of disruption and harm to health, declines in property value, and an injunction ordering SpaceXAI to reduce the noise. A separate lawsuit over the same gas turbines alleges air-pollution violations, as well as operating without required permits.

Another case brought by residents in eastern Oregon 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 data centers in Morrow County had contributed to nitrate contamination in nearby groundwater, making well water unsafe to drink and cook with. The lawsuit demanded health monitoring, access to potable water, and a cleanup to make well water safe again. In an out-of-court settlement in March, Amazon denied any wrongdoing, though it agreed to pay $20.5 million to help resolve the situation. 

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