Hyperscale Data Pivots to AI Amid Noise Lawsuits
Hyperscale Data Inc. will cease cryptocurrency mining in Dowagiac to reduce noise levels and pivot toward AI computing and robotics development.
Representatives from Hyperscale Data Inc. and Alliance Cloud Services addressed the Dowagiac City Council on Monday night following community complaints regarding constant noise and water contamination. The company is currently facing a class-action lawsuit over noise levels. While CEO William Horne claimed the facility is in compliance, the city of Dowagiac confirmed that noise levels exceed legal decibel limits.
To mitigate these issues, Hyperscale Data announced it will shut down cryptocurrency mining operations within three months. The company will pivot toward AI computing and robot development through a partnership with a California firm. This shift is part of a planned $100 million investment in the facility, which includes a recent 40-acre acquisition near Pine Lake. To address water contamination concerns, the company proposed implementing a closed-loop system.
Residents expressed continued dissatisfaction with the proposed solutions. In response, Horne offered to buy out properties on Louise Avenue for residents who remain unhappy after the noise reduction measures are implemented.