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Tech firm doubling Dowagiac data center land to meet AI demand

Hyperscale Data Inc. has announced that its wholly owned subsidiary, Alliance Cloud Services, plans to roughly double the size of its property at The Business Center of Southwestern Michigan in Dowagiac, where it operates a data center.
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Hyperscale Data Inc. has announced that its wholly owned subsidiary, Alliance Cloud Services, plans to roughly double the size of its property at The Business Center of Southwestern Michigan in Dowagiac, where it operates a data center.

Dowagiac residents are bracing for a data center’s expansion plans.

Las Vegas-based tech firm Hyperscale Data Inc. issued a press release Monday that has the town talking. The company announced that its wholly owned subsidiary, Alliance Cloud Services, has agreed to buy nearly 50 acres of land to expand its data center on Prairie Ronde Street in Dowagiac.

The company said the purchase will let it “continue to address the surging demand for AI and high-performance computing.”

Posting on Facebook, Dowagiac Mayor Patrick Bakeman said the city administration learned of the plans from the press release.

Bakeman wrote, “We have the same questions you do. While that company is a private business, given the current discussions around data centers, we’ve reached out to them for more information.”

The news comes less than a week after Cass County Commissioners and planners hosted an expert from the University of Michigan. Sarah Mills gave a talk about how local governments can prepare for and, if they so choose, object to new large-scale data centers.

Parrott, a longtime public radio fan, came to WVPE in 2023 with over 25 years of journalism experience at newspapers in Indiana and Michigan, including 13 years at The South Bend Tribune. In his free time he enjoys pickleball, golf and spoiling his dog Bailey, who is a great girl.