Portage Council Approves Moratorium on Data Centers and Battery Storage Facilities Amid Growing Local Concerns

Portage Moves to Pause Data Center Development as Residents Raise Environmental and Safety Worries

PORTAGE, MI — The City of Portage has approved a moratorium on any new plans for data centers and electrical battery storage facilities in town. The decision came during a public hearing on Tuesday night when residents voiced significant concerns about the high-tech plants.

During the public hearing, 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.

Cheryl Lathrop says her Consumers Energy bills are already high enough

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.

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.

City Officials Seek More Regulation Before Permanent Ban

Mayor Pro Tem Jim Pearson weighed in on the matter during the hearing. The vote was unanimous.

City officials did not specify the length of the proposed moratorium during the March 24 meeting. 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.

Growing Concerns About Data Centers Across the Region

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.

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.

State and Federal Pushback on Local Control

The State of Michigan is also actively promoting data centers with tax incentives and rules that limit local authorities ability to stop them.

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 the state consider similar measures.

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.

Federal Leaders Join the Conversation

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.

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 Comes Next

The Portage City Council will need to revisit the moratorium proposal at a future meeting to either adopt the code amendment or revise it based on additional input. City staff will prepare the necessary documents and recommendations for council consideration.

The moratorium would not affect existing data centers already operating in the community. It would only apply to new development proposals submitted after the moratorium takes effect.