City Council Approves One-Year Moratorium on Data Centers and Battery Energy Storage Systems
*PORTAGE, MI* — The Portage City Council on Tuesday unanimously voted to move forward with an ordinance that would establish a temporary moratorium on data centers and battery energy storage systems, directing city staff to prepare amendments to the city code for future council consideration.
The action does not immediately enact the moratorium. Instead, it sets the stage for a more permanent regulatory framework that could pause new development related to these facilities while the city considers how to properly regulate them.
During the Tuesday night public hearing, residents expressed deep concerns about the potential impact of data centers and Battery Energy Storage Systems (BESS) on local utility bills and environmental safety.
"Last month, my energy usage was 37% less than an energy-efficient home. Yet, my energy bill was just shy of $145," Cheryl Lathrop said. "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's testimony highlighted fears that families would not be able to afford energy costs if new data centers were permitted to operate in the city.
Residents Express Safety Concerns Over Battery Storage Facilities
Some residents also expressed fire concerns over BESS facilities, which help to stabilize the electrical grid and supply power regardless of fluctuations.
"Jason Mikkelborg and Katelyn Clarey say the high-tech plants can create brand new kinds of cataclysms that most local public safety departments are not equipped to handle," John McNeill reported.
However, proponents of BESS say current safety rules have mitigated the risk of fires.
Mayor Pro Tem Jim Pearson Defends Proactive Measure
Mayor Pro Tem Jim Pearson defended the city's decision to impose the moratorium, noting that no data center or battery storage projects are currently in the works in Portage.
"We have an opportunity to evaluate what we need to do to make sure the city is protected," Peter Dame, chief development officer for the City of Portage, said. "Concerns that people have about these types of developments are they're very large, but they don't have a lot of employees. Noise, vibration, proximity to residential areas, depletion of water resources and impact on environment are kind of the big ones."
Dame explained that the city council decided it needed to evaluate if current ordinances properly protect the city from data centers and battery storage system type developments during its annual goal-setting session at the end of 2025.
"In researching the options for amending our city code, we decided that as a proactive measure, we should recommend a temporary moratorium for those types of uses in the Portage area," Dame said. "Until such time as the city can adopt any changes in the regulations that might be necessary to protect the community from that type of development."
Portage officials told local reporters that at this time the city has not received any applications for either type of facility, however, recent proposals in surrounding townships largely prompted the discussion to get ahead of the issue.
State Pushes Forward Despite Local Resistance
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 federal level, U.S. Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez announced plans for their own moratorium to introduce legislation aimed at pausing certain artificial intelligence and data center development while federal standards are considered.
What Happens Next
The Portage City Council will need to vote on the final ordinance 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.
The moratorium could last up to one year if approved, giving city officials time to review potential impacts and update zoning rules and ordinances.
"This type of use in a city would be regulated already and would typically be steered into an industrial area, but we want to make sure we have the right ordinances in place before we allow these facilities," Dame said.
The unanimous vote reflects broad council support for taking a measured approach to protect Portage residents from potential environmental and financial impacts of these developments.
Sources
- https://www.wmuk.org/wmuk-news/2026-03-26/portage-hits-pause-on-data-centers-and-bess-facilities
- https://watershedvoice.com/2026/03/25/portage-moves-toward-data-center-pause-as-concerns-grow-nationwide/
- https://wkzo.com/2026/03/25/907151/
- https://wwmt.com/news/local/portage-considers-one-year-moratorium-data-centers-battery-energy-storage-systems-bess-facilities-development-michigan-wwmt
- https://www.portagemi.gov/m/newsflash/home/detail/1831