Residents Sue Las Vegas Company Over Noisy Michigan Data Center Operations
Detroit law firm files federal class-action lawsuit on behalf of residents who say 24/7 data center noise makes their properties unusable.
DOWAGIAC, MICHIGAN — Residents near a data center in southwestern Michigan have filed a federal class-action lawsuit against a Las Vegas-based company, alleging the facility’s constant noise operations have made their properties unusable.
Liddle Sheets P.C., a Detroit law firm, announced Tuesday it filed the lawsuit against Alliance Cloud Services LLC in the U.S. District Court for the Western District of Michigan. The firm represents residents living within one mile of the company’s data center in Dowagiac.
The complaint argues residents cannot use and enjoy their properties due to noise the facility generates 24 hours a day, seven days a week. The lawsuit comes as the company plans to expand its data center operations throughout Michigan.
Residents Describe Impact on Daily Life
“My husband and I have been unable to use our yard since this facility began operating,” said Lindy Valenzuela, one of the named plaintiffs. “It is impossible to stay outside for longer than 10 minutes at a time before succumbing to headaches. The noise also penetrates the inside of our house even with the windows closed.”
The complaint states Alliance Cloud Services has “failed to implement adequate soundproofing equipment at its Data Center that properly absorbs, captures, and/or prevents the escape of noise, thereby resulting in the offsite emission of excessive noise beyond its property.” The lawsuit argues a properly constructed and maintained facility would have taken steps to reduce the noise.
Legal Team Seeks Better Community Relations
“These people had no say in the introduction of this large and loud data center into their otherwise peaceful community,” said Laura Sheets, the lead lawyer on the case. “This community just wants to be able to enjoy their homes, and they want the data center to deal with the noise and be a better neighbor.”
Alliance Cloud Services’ parent company, Hyperscale Data, Inc., did not respond to a request for comment from Michigan Advance.
Facility’s Operational Background
The facility initially operated as a Bitcoin mining operation before transitioning to data center services. Hyperscale Data announced plans in 2024 for major expansion at its Michigan facility, according to previous reports.
The federal lawsuit represents the latest challenge facing data center development in Michigan communities, where residents have raised concerns about noise pollution from facilities requiring constant cooling and power systems.
The case will proceed through federal court as residents seek relief from what they describe as disruptive noise affecting their quality of life and property values in the Dowagiac area.
