City Council Votes to Pause Data Center Plans

PORTAGE, MI – The Portage City Council unanimously advanced legislation to impose a moratorium on data centers and battery energy storage systems (BESS) following a contentious public hearing on Tuesday night.

During the meeting on March 24, residents voiced significant concerns about the impact these high-tech facilities have on local utility bills and community safety.

Without further discussion, the council voted to move forward with an ordinance that would establish a temporary moratorium on the developments, city officials said.

The proposed change would amend Chapter 42 of the city code and direct city staff to prepare the ordinance for future council consideration. If adopted at a future meeting, the moratorium would pause new development related to data centers and battery storage systems while the city considers how to regulate them.

Residents Raise Concerns at Public Hearing

The public hearing drew attention from local residents who expressed frustration with rising energy costs and safety risks associated with large-scale data center operations.

Cheryl Lathrop told the council her Consumers Energy bills are already too high, even without a data center. She argued that existing facilities in other communities have demonstrated the impact these operations have on household budgets.

Jason Mikkelborg and Katelyn Clarey spoke about the potential dangers these facilities pose to local public safety departments. They warned that high-tech plants can create new kinds of catastrophes that most emergency response teams are not equipped to handle.

During a public hearing on the moratorium proposal Tuesday night, citizens said existing data and storage plants have driven up local utility bills in communities where they are already located and pose a physical and environmental threat.

The council heard testimony from multiple residents who shared their concerns about the environmental and safety risks associated with these facilities.

Moratorium Would Last Through End of 2026

Mayor Pro Tem Jim Pearson addressed the council during the meeting, explaining the rationale behind moving forward with the moratorium at this time.

The vote was unanimous, with all council members in favor of advancing the legislation to a future vote for final approval.

City officials did not specify the exact length of the proposed moratorium during the March 24 meeting, but the ordinance would allow the city time to develop comprehensive regulations before any restrictions take effect.

It lasts through the end of 2026. Data centers power artificial intelligence applications and often use large amounts of water and electricity.

Data Centers Draw Nationwide Attention

The Portage action represents an early step toward potential local regulation, with additional council action required before any moratorium takes effect. The move comes as local governments across Michigan and the country grapple with how to regulate data centers, which require significant infrastructure, including land, electricity and water.

Demand for such facilities has grown rapidly in recent years alongside cloud computing and artificial intelligence technologies. That growth has brought increased scrutiny. In some communities across the U.S., residents and local officials have raised concerns about the large amounts of electricity required to operate data centers, potential strain on local power grids, water use for cooling systems, and noise from cooling equipment and backup generators.

At the same time, developers and some policymakers point to potential economic benefits, including tax revenue, infrastructure investment and job creation.

Statewide Data Center Debate Intensifies

The controversy in Saline reflects a broader statewide trend. Across Michigan:

  • Communities are weighing restrictions or moratoriums on new data center projects
  • Lawmakers are considering legislation to pause development while long-term impacts are studied
  • Residents are raising concerns about land use, water consumption, and energy demand

State regulators have approved supplying up to 1.4 gigawatts of power to support large-scale data center operations tied to the Saline project. That level of consumption has shifted the conversation away from zoning disputes to something far more consequential: whether Michigan's power grid can keep up.

The issue has already drawn scrutiny from top state officials. Governor Dana Nessel has challenged utility agreements tied to large-load energy contracts, warning that regulators must ensure existing ratepayers are not left subsidizing infrastructure built to support private development. Her office has pushed for additional review of how these agreements are structured, signaling that oversight of data center energy deals is likely to intensify.

Local Pushback Is Growing

The Portage moratorium follows similar actions in other communities. In Pavilion Township, officials last year delayed consideration of a proposed data center project after residents raised concerns during public meetings. A real estate firm, Franklin Partners, had requested a zoning change to allow what it described as "data warehousing facilities."

The Portage action represents an early step toward potential local regulation, with additional council action required before any moratorium takes effect.

The Portage City Council on March 24 unanimously voted to move forward with an ordinance that would establish a temporary moratorium on data centers and battery energy storage systems (BESS).

The move comes as local governments across Michigan and the country grapple with how to regulate data centers, which require significant infrastructure, including land, electricity and water.

What Comes Next

The Portage City Council will need to vote on the final ordinance before any moratorium takes effect. City staff must prepare the code amendment and present it to the full council for consideration.

The moratorium would pause new development related to data centers and battery storage systems while the city considers how to regulate them. City officials said they want to ensure proper safeguards are in place before any restrictions begin.

The council's unanimous vote to advance the legislation signals strong support for addressing resident concerns about data centers and their impact on local communities.