Preemptive Move Before Any Applications Hit the Door

PORTAGE, MI — Portage city officials approved a temporary halt on battery energy storage systems (BESS) and data center proposals during their March 24 meeting, joining a growing number of Michigan municipalities seeking to understand the potential risks before approving any developments of this kind.

Portage Chief Development Officer Peter Dame told council members the city hasn't seen any interest or applications for this type of development, making the move preemptive rather than reactive.

"It's a preemptive move that several Michigan cities are pursuing as interest ramps up," Dame explained. "Michigan laws, clean energy priorities and tax breaks have attracted both kinds of development across the state in recent years."

The Debate Over Rapid Expansion

The surge in data center and battery storage facilities has drawn sharp criticism from local residents concerned about potential impacts on water supplies, energy costs, and emergency response capabilities.

Major technology companies like Apple, Amazon, Meta, and a variety of AI companies have been building data centers to house IT infrastructure and process data. Meanwhile, BESS facilities can store and provide electricity to buildings or grid networks to meet increased demand.

"Critics argue that data centers hurt local water supplies and drive up energy costs, while BESS facilities pose the risk of runaway fires and clouds of toxic gas," according to city documents reviewed by MLive.

Timeline Until December

Portage's moratorium will give local officials until December 31 to understand the risks and create guidelines for potential developments. City staff will develop a detailed zoning analysis and gather community input on the matter.

"I hope that if a facility like this were to come to the area, first responders and anyone in an impacted area, there would be a plan to deal with it when it happens," said Caitlyn Clary, a Vicksburg resident who works and shops in Portage.

Local rules may regulate where BESS and data centers can be built, but cities aren't allowed to ban them outright. Without workable guidelines, developers could go directly to the state for approval, effectively bypassing the city's input on where and how these facilities would be built within city limits.

Kalamazoo County Townships Already Acting

The issue has sparked months-long debates across Kalamazoo County, with several townships already taking action:

  • Comstock Township finalized regulations that effectively blocked a BESS facility near an elementary school in December 2025, just weeks ahead of its moratorium deadline.
  • Oshtemo Township officials unanimously approved a moratorium on commercial data centers at a March 10 board meeting. The ordinance will stay in place until the township can develop regulations on data center construction.

"The issue has sparked months-long debates in Comstock, Oshtemo and Pavilion townships," noted Portage Councilmember Kathleen Olmsted, who championed the issue in Portage.

Broader Michigan Trend

Portage is following a trend seen across Michigan. Cities like Saline, Northville, Howell Township, Sterling Heights, and Saginaw are pursuing similar moratoriums or regulations.

The state has approved six battery energy storage projects totaling 1,332MW of capacity, including projects for DTE's grid capacity and a large Oracle data center. The Michigan Public Service Commission approved these projects earlier this year.

Council Support

City manager and other elected officials were on board with the moratorium, according to Councilmember Olmsted.

"Councilmember Kathleen Olmsted championed the issue in Portage. The city manager and other elected officials were on board, she said."

Looking Ahead

Portage staff will continue to develop a detailed zoning analysis and gather community input. The moratorium is intended to ensure that when the city does approve facilities of this kind, they will be done so with proper safeguards in place for public safety, emergency response, and environmental protection.

The debate reflects a growing tension between state-level economic development priorities and local communities' concerns about the rapid expansion of large-scale energy and technology infrastructure.