Portage Takes Stand on Data Centers as Energy Bills Soar
PORTAGE, MI — The City of Portage has moved to limit the growth of data centers and battery storage facilities in the city, approving a moratorium that will remain in place until the end of 2026. The council vote came after residents expressed growing concerns about rising energy bills, fire risks, and environmental impacts from these high-tech developments.
During a public hearing on Tuesday night, Portage City Council members heard from citizens who 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.
"Last month, my energy usage was 37% less than an energy-efficient home. Yet, my energy bill was just shy of $145," said Cheryl Lathrop, a Portage resident. "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 told the council her energy bills are already too high without a new data center in town. Her concerns reflect a broader anxiety among Portage residents who worry about the financial burden that large-scale technology facilities could impose on households.
Fire and Safety Concerns Over Battery Storage
The moratorium also applies to Battery Energy Storage Systems, which help to stabilize the electrical grid and supply power regardless of fluctuations. Some residents expressed fire concerns over BESS facilities, though proponents of BESS say current safety rules have mitigated the risk of fires.
"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," reported John McNeill of WKZO.
The unanimous vote by city council members comes as local governments across Michigan and the country grapple with how to regulate data centers. These facilities require significant infrastructure, including land, electricity and water, and demand has grown rapidly alongside cloud computing and artificial intelligence technologies.
Council Vote and Next Steps
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. The action does not immediately enact the moratorium. Instead, it directs city staff to prepare an amendment to the city code for future council consideration.
According to the meeting agenda, the proposed change would amend Chapter 42 of the city code to establish a temporary moratorium on the developments. 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.
"Without discussion, the council voted to impose the moratorium until the end of this year, or until they can put city zoning and ordinance amendments in place to regulate the operations," said John McNeill of WKZO.
City officials did not specify the length of the proposed moratorium during the March 24 meeting, but the council has indicated it will last through the end of 2026.
Growing Movement Across Michigan
The move comes as local governments across Michigan and the country grapple with how to regulate data centers. Similar concerns have surfaced locally in Portage. 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" in the township. The Portage action represents an early step toward potential local regulation, with additional council action required before any moratorium takes effect.
At the federal level, U.S. Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez announced plans on March 25 for their own moratorium to introduce legislation aimed at pausing certain artificial intelligence and data center development while federal standards are considered.
While moratoriums on data centers have been discussed in other parts of the country, they remain relatively uncommon at the municipal level in southwest Michigan.
What Data Centers Mean for Communities
Data centers are facilities that house servers and other computing equipment used to store and process digital information. 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.
"Some residents expressed fire concerns over BESS facilities. However, proponents of BESS say current safety rules have mitigated the risk of fires," reported Annabella Tetner of WMUK.
The Portage City Council has now taken the first step toward addressing these concerns, directing staff to prepare the necessary code amendments for future consideration. The moratorium will remain in place until the end of 2026, giving the city time to develop comprehensive regulations for these facilities.
What Comes Next
The next step for the moratorium is for city staff to prepare an amendment to the city code that would formally establish the temporary pause on data centers and battery storage systems. That amendment will be brought before the council at a future meeting for final adoption.
If the council approves the code amendment, the moratorium would go into effect and pause any new development proposals related to data centers and battery storage systems in the City of Portage. The moratorium would remain in place until the end of 2026 or until the city adopts permanent regulations to govern these facilities.
The Portage City Council has shown it is listening to constituent concerns about energy costs, safety risks, and environmental impacts. The moratorium represents a proactive approach to regulating these high-tech developments before they arrive in the community.