City Council Votes Unanimously to Establish Temporary Moratorium Through End of 2026

PORTAGE, MI — The Portage City Council has approved a moratorium on new data centers and battery energy storage systems until the end of 2026, giving the city time to develop comprehensive zoning and ordinance amendments to regulate these massive facilities.

The unanimous vote came during a public hearing on March 24, when residents voiced strong concerns about environmental impacts, safety risks, and already-high utility bills.

"This is a responsible step to protect our community," said Mayor Pro Tem Jim Pearson during the hearing. "We want to make sure we have the proper regulations in place before approving any new data center or battery storage facility."

Residents Raise Concerns About Utility Bills and Safety

During the public hearing, residents expressed alarm about the potential strain data centers could place on local infrastructure.

"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, who testified in favor of the moratorium. "I can't imagine what a family with two to four children would be 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."

The concerns about existing facilities were echoed by many attendees. Residents testified that data centers and battery storage plants have already driven up utility bills in communities where they are located and pose environmental threats to local neighborhoods.

Another resident, Jason Mikkelborg, raised safety concerns about battery energy storage systems.

"These high-tech plants can create brand new kinds of cataclysms that most local public safety departments are not equipped to handle," Mikkelborg said.

Data Centers Face Growing Scrutiny Across Michigan

The Portage action 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.

Statewide Push for Data Centers Creates Local Pushback

The State of Michigan is actively promoting data centers with tax incentives and rules that limit local authorities' ability to stop them. This has created tension between state and local governments.

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. 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 Moratorium Details

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.

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. City officials did not specify the length of the proposed moratorium during the March 24 meeting, but it is understood to last through the end of 2026.

Broader Context: Federal Moratorium Proposal

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.

The Portage moratorium represents an early step toward potential local regulation, with additional council action required before any moratorium takes effect. The city is seeking to get ahead of the curve as plans for similar projects pop up in other local communities across the state.

What's Next

The Portage City Council must now vote on the formal ordinance that would establish the moratorium. Until that happens, no new data center or battery storage facility permits will be processed during the interim period.

The moratorium applies to Battery Energy Storage Systems as well, which help to stabilize the electrical grid and supply power regardless of fluctuations. Some residents expressed fire concerns over BESS facilities, though proponents say current safety rules have mitigated the risk of fires.

Source Links

  • Watershed Voice: Portage moves toward data center pause as concerns grow nationwide — https://watershedvoice.com/2026/03/25/portage-moves-toward-data-center-pause-as-concerns-grow-nationwide/
  • WMUK: Portage hits 'pause' on data centers and BESS facilities — https://www.wmuk.org/wmuk-news/2026-03-26/portage-hits-pause-on-data-centers-and-bess-facilities
  • WKZO: Portage puts moratorium on data centers, battery storage facilities — https://wkzo.com/2026/03/25/907151/
  • WKZO: Portage City Council to discuss data center and battery storage facility permits — https://wkzo.com/2026/03/24/906493/