Dowagiac residents file federal class action over Alliance Cloud Services data-center noise

Two Dowagiac residents have filed a proposed federal class action against Alliance Cloud Services LLC, alleging that noise from the company’s data center operates around the clock and interferes with the use and enjoyment of nearby homes.

Lindy Valenzuela and John Valdes filed Valenzuela et al. v. Alliance Cloud Services, LLC on May 26, 2026, in the U.S. District Court for the Western District of Michigan. The case is numbered 1:26-cv-01694.

The complaint seeks to represent owner-occupants and renters of residential properties within one mile of the Dowagiac facility. The federal docket classifies the case as a tort-to-land and property-damage action brought under diversity jurisdiction.

What the complaint alleges

The residents allege that the data center produces continuous noise 24 hours a day, seven days a week. They say the noise has impaired their ability to use and enjoy their properties.

Coverage of the complaint-related dispute reports that Dowagiac’s city noise limits are 65 decibels during the day and 55 decibels at night. The complaint-related reporting also describes allegations of inadequate soundproofing and noise mitigation at the facility.

The allegations have not been decided by the court. The docket identifies the filing and the parties but does not show a ruling on liability, damages, an injunction or a settlement. It also does not establish that the proposed class has been certified.

Data-center expansion remains part of dispute

The lawsuit adds a federal court challenge to a broader local dispute over the facility’s 24-hour operation, noise limits and planned expansion.

Alliance Cloud Services operates the Dowagiac facility and is identified in local reporting as a subsidiary of Hyperscale Data Inc. The site has previously been used for Bitcoin mining. Reports describe plans to relocate that operation and expand the facility for artificial-intelligence uses.

The facility is reported to have an operating capacity of 30 megawatts. Proposed expansion has been described as potentially increasing capacity to 340 megawatts. That figure refers to the reported plan, not completed construction.

Hyperscale Data declined to comment on the lawsuit, according to WSJM.

The filing puts nearby residents’ concerns about property use and potential property-value effects before federal court while scrutiny of the facility’s noise and expansion continues. The case’s initial filing is the known action on the federal docket; no ruling or other case outcome is listed in the docket record cited here.