City Council Unanimously Approves Temporary Moratorium Until Year-End

*PORTAGE, Mich.* — The Portage City Council has voted unanimously to impose a temporary moratorium on new data center and battery energy storage system (BESS) developments in the city, effective immediately until the end of 2026.

The decision comes after months of public concern from residents about the environmental and infrastructure impacts of these massive facilities, which have driven up utility bills in communities where they are already located and pose physical and safety risks that local first responders are not equipped to handle.

"To listen to residents, they would probably rather have them banned altogether," said WKZO reporter John McNeill, who covered the public hearing. "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."

Residents Raise Concerns About Utility Bills and Safety Risks

Cheryl Lathrop testified at the public hearing that her Consumers Energy bills are already high enough without additional strain from these power-hungry facilities.

"Cheryl Lathrop says her Consumers Energy bills are already high enough," McNeill reported. "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."

City officials heard testimony about the potential for new hazards, including fires, explosions, and other emergencies that could overwhelm local fire and emergency services.

Mayor Pro Tem Jim Pearson addressed the council during the meeting, explaining the unanimous vote to impose the moratorium until the end of the year, or until the city can put zoning and ordinance amendments in place to properly regulate these operations.

"The vote was unanimous," Pearson stated according to WKZO's coverage of the March 24 meeting.

Temporary Measure While Regulations Take Shape

The city council did not immediately enact the moratorium. Instead, the action directs city staff to prepare an amendment to Chapter 42 of the city code that would establish a temporary moratorium on data center and battery storage system developments.

If adopted at a future council meeting, the moratorium would pause new development while the city considers how to properly regulate these facilities, which require significant land, electricity, and water resources.

"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)," reported Watershed Voice staff writer Maxwell Knauer. "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."

Data Centers Draw Scrutiny Nationwide

The move in Portage comes as local governments across Michigan and the country grapple with how to regulate data centers, which have seen rapid growth alongside cloud computing and artificial intelligence technologies.

In some communities across the United States, 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
  • Noise from cooling equipment and backup generators

At the federal level, U.S. Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez announced plans to introduce legislation aimed at pausing certain artificial intelligence and data center development while federal standards are considered.

Previous Local Concerns

While moratoriums on data centers remain relatively uncommon at the municipal level in southwest Michigan, similar concerns have surfaced locally.

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," Knauer wrote.

What Comes Next

The temporary moratorium in Portage will remain in place until the end of 2026, or until the city can complete the ordinance amendments needed to properly regulate data centers and battery storage facilities.

The decision reflects growing unease among residents about the rapid expansion of these facilities and their impact on local infrastructure, utility costs, and public safety.

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