It looks like an AI data center is coming to Southwest Michigan, but not much is known.

Hyperscale Data Incorporated has announced its subsidiary, Alliance Cloud Services, has reached an agreement to acquire nearly 49 acres of land to expand its existing data center campus, which is located in Dowagiac, although the company didn’t specify that detail. It says once the deal closes, it will own about 83 total acres in the region, more than doubling its current footprint.

Hyperscale says says the expansion will help meet increasing demand for AI and high-performance computing. CEO Will Horne says, “This land acquisition will give us additional space and the opportunity for future development and demonstrates the company’s long-term commitment to Southwest Michigan and the company’s operations there.”

The city of Dowagiac early this week released a statement saying it knows little about this project. On Wednesday, Mayor Patrick Bakeman issued an open letter to Hyperscale Data, saying the company’s announcements have been vague and it’s neither applied for nor received any approvals necessary to facilitate its expansion plans.

Bakeman called on the company to announce which property it’s purchasing and submit plans for city officials to review within 45 days. He said news on this project and the lack of specifics from Hyperscale have “bred uncertainty and eroded our confidence that you will do the right thing in our community.”

We have the mayor’s full letter below.

“April 1, 2026
Open letter to Will Horne, CEO
Hyperscale Data, Inc

In Dowagiac, we pride ourselves on our ability to create an environment in which both
businesses and neighbors can be successful. I can cite many examples throughout Dowagiac
where this is occurring. Our expectation has always been that your business, like the many
previous industrial uses of your property, can safely and peacefully coexist with the people living
in the homes near your business.

Last year, you made a public announcement that you intended to greatly expand your data
center operations in the City of Dowagiac. Earlier this week, you made another public
announcement about an unnamed parcel of land in Southwest Michigan, presumed to be in
Dowagiac, that you intend to purchase.

Both announcements were vague, and you have neither applied for nor received any approvals
necessary to facilitate your expansion plans. By doing this, you’ve bred uncertainty and eroded
our confidence that you will do the right thing in our community.

Here’s what’s expected of you:

1. Immediately announce which property you claim to be purchasing. That will end the needless
speculation that has run rampant in our community. While you are likely to have NDAs with the
property owner, I trust that those agreements can readily be terminated by mutual consent.

2. In response to your 2025 press release regarding your growth plans, City Council and staff
have spent the last several months preparing for your plan’s submission. We’ve spent time and
money educating ourselves on the issues, consulting with experts in the data center field, and
enacting new legislation to protect our community, like adding specific, enforceable decibel
levels to our noise ordinance. We are ready to review your plans to ensure that you’re on track
to achieve full regulatory compliance. We expect that you will be able to submit plans within 45
days so that we can address the concerns that continue to be raised because of your multiple
press releases.

We stand ready to listen. However, no proposal has been submitted and no decisions have
been made. It is your responsibility to bring forward a clear and transparent plan.

On Dowagiac!
Mayor Patrick M. Bakeman
City of Dowagiac, Michigan”

Hyperscale says it expects the property purchase to close within 60 days.