City Takes Preemptive Action Amid Growing Statewide Concerns

*PORTAGE, MI* — Portage officials approved a pause on battery energy storage systems (BESS) and data center proposals during their March 24 meeting, joining a growing movement of Michigan communities seeking to study the risks before allowing such development to proceed.

Portage Chief Development Officer Peter Dame noted that the city hasn't seen any interest or applications for this kind of development to date. However, officials described the decision as a preemptive move that several Michigan cities are pursuing as interest ramps up statewide.

"The issue has sparked months-long debates in Comstock, Oshtemo and Pavilion townships," said Councilmember Kathleen Olmsted, who championed the issue in Portage. "Seeing that play out across Kalamazoo County, I knew we needed to take action here."

The city manager and other elected officials were on board with the moratorium, Olmsted said, noting it gives local officials until December 31 to understand the risks and create guidelines for potential developments of this kind.

Resident Concerns Over Energy Bills and Safety

Cheryl Lathrop, a concerned resident who spoke to the council, expressed worry about rising energy costs.

"Last month, my energy usage was 37% less than an energy-efficient home. Yet, my energy bill was just shy of $145," Lathrop told the council.

Lathrop worried that families would not be able to afford energy costs if there was not a moratorium.

"I can't imagine what a family, where they have two to four children, what they're paying for their utility rates if I'm paying just shy of $145, when I don't use hardly any energy. If our energy bills skyrocket, people aren't going to be able to pay their energy cost," Lathrop said.

The concerns about battery energy storage systems (BESS) facilities extend beyond energy costs. Some residents expressed fire concerns over BESS facilities, which store and provide electricity to buildings or grid networks to meet increased demand.

However, proponents of BESS say current safety rules have mitigated the risk of fires and toxic gas releases.

Regional Context: A Michigan Trend

Portage's moratorium is part of a broader trend across Michigan as communities evaluate the trade-offs of attracting data centers and battery storage facilities.

"I hope that if a facility like this were to come to the area, first responders and anyone in an impacted area, there would be a plan to deal with it when it happens," said Caitlyn Clary, a Vicksburg resident who works and shops in Portage.

Local rules may regulate where BESS and data centers can be built, according to city documents. However, cities aren't allowed to ban them outright. Without workable guidelines, developers could go directly to the state for approval, effectively bypassing the city's input on where and how these facilities are built within city limits.

The issue has sparked months-long debates in surrounding areas, including:

  • Comstock Township — finalized regulations that effectively blocked a BESS facility near an elementary school in December 2025, just weeks ahead of its moratorium deadline
  • Oshtemo Township — officials unanimously approved a moratorium on commercial data centers at a March 10 board meeting

"I hope that if a facility like this were to come to the area, first responders and anyone in an impacted area, there would be a plan to deal with it when it happens," Clary said.

Portage staff will develop a detailed zoning analysis, per the meeting agenda, and gather community input on the matter before finalizing regulations.

The Broader State Picture

The debate over data centers and battery storage facilities is intensifying across Michigan as major technology companies like Apple, Amazon, Meta and various AI companies seek locations for their infrastructure projects.

Major technology companies use data centers to house IT infrastructure and process data, while BESS facilities can store and provide electricity to a building or grid network to meet increased demand.

Critics argue that data centers hurt local water supplies and drive up energy costs, while BESS facilities pose the risk of runaway fires and clouds of toxic gas.

The state's approach to balancing clean energy priorities, tax breaks, and community concerns continues to evolve as more communities weigh in on the issue.

What's Next for Portage

Portage officials are committed to developing workable guidelines that protect residents while considering the potential economic benefits of such development.

"Portage's moratorium will give local officials until Dec. 31 to understand the risks and create guidelines for potential developments of this kind," Dame said.

The city manager and other elected officials were on board with the moratorium, Olmsted said, emphasizing that this is a step several Michigan communities are taking as they navigate the rapidly changing landscape of technology infrastructure development.

The issue continues to spark debate as Michigan communities seek to balance economic development with concerns about environmental impact, public safety, and quality of life for residents.