DOWAGIAC, MI -- A data center in Dowagiac plans to end bitcoin mining operations and transition to artificial intelligence computing.
The announcement comes as two residents near the 30 megawatt data center at 415 E. Prairie Ronde St. have filed a complaint against Alliance Cloud Services — a subsidiary of Hyperscale Data Inc.
The lawsuit alleges the data center creates “excessive noise” that is invading people’s homes. The complaint argues the noise is caused by intentional and/or negligent acts by Hyperscale Data.
Hyperscale Data announced Alliance Cloud Services is preparing to sign a master services agreement with a customer to provide AI computing, via a press release on Monday, June 15.
The release did not disclose the customer, and a representative from Hyperscale Data could not be reached for comment. Representatives from the company have yet to respond to any requests for comment from MLive/Kalamazoo Gazette reporters on ongoing litigation or expansion plans over the past three months.
When the agreement is complete, bitcoin mining operations at the data center will end over the course of several months, the release said.
AI computing would start with 10 megawatts in the first 90 days and add another 10 megawatts in the next 90 days. Through 2028, the total power capacity would grow to 52 megawatts, the release said.
Over the 20-year contract term, Hyperscale Data is expected to generate $2.5 billion in revenue.
Hyperscale Data previously announced it intends to expand total capacity at the facility to 340 megawatts. At 52 megawatts, the contract nearing completion would represent 17% of the facility’s total capacity, according to the release.