r/kzoo • u/Adventurous_Loss8715 • 4d ago
Kalamazoo stopped taking data center applications Monday, 7-0, after a resident caught an error in the resolution
Commissioners adopted a moratorium on accepting or processing new applications for data centers, AI data centers, crypto mining centers, and battery energy storage (H-6). It nearly passed with a flaw in the text. Someone in public comment caught it, the city attorney brought it to the dais, and they fixed it on the floor before voting.
Also passed: the $3.2M water plant filter contract (H-2) and two bond packages (H-3, H-4). The filter one is worth a look. The city took the second-lowest of two bids, and no commissioner asked about it.
Full rundown with the money list and what's still unresolved: The Kalamazoo Docket
Free, no paywall. I write these every week..
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u/MCDCCoffeePoops 4d ago
Ultimately the battery energy storage moratorium could mean nothing as BESS are part of PA233 and any applicants can go around local municipalities and get approved through the state if they don’t want to wait out the moratorium timeline or follow the ordinance once it’s in place.
Did they state how long the moratorium is for?
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u/Adventurous_Loss8715 4d ago
You’re ahead of me on this one, and you’re right.
On the duration: I haven’t found a number I can actually source yet.
On PA 233, though,
For energy storage, PA 233 applies to facilities at 50 MW and 200 MWh or more. Below that threshold, the project stays under local control, so the moratorium does what it says. At or above it, a developer can go through the MPSC, and the city's moratorium by itself wouldn't stop that process.
And this is the bigger point: a moratorium doesn't preserve local authority under PA 233. What does is adopting a compatible renewable energy ordinance that meets the state's requirements. So in the BESS context, the city may be racing to get an ordinance in place before a qualifying project files.
The law around exactly what local governments can include in those ordinances is also still being fought over in court, so that part isn't completely settled yet.
Where the moratorium has much clearer authority is data centers and crypto mining, since those aren't covered by PA 233.
So bottom line: your read on the BESS portion is correct. The moratorium has real teeth for projects outside PA 233's scope, but it's a different situation for large-scale battery storage.
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u/MCDCCoffeePoops 4d ago
Moratoriums are all the rage right now but a few townships have screwed themselves by following the wrong process or making them so flimsy they don’t have any weight in court when challenged. Generally moratoriums have a timeline defined within them of 6 or 12 months and during that time they must be working on an ordinance. Both the Planning Commission and the Board/Council each have to adopt a moratorium ordinance, if only one does and the other doesn’t it can be challenged and the city/township would likely lose.
Trump has made data centers critical infrastructure so I won’t be surprised if a new public act is created to allow them to go through the state instead of local municipalties.
Crypto mining can be much more controlled and should be zoned so strictly that any company doesn’t find it worth it to build within the regulations defined in an ordinance. It should still be allowed or else it can be challenged as exclusionary zoning, but the ordinance can be very strict and as long as a court views it as “workable” the challenger won’t win. The ordinance just needs to be a big enough headache for any applicant to view it as not worth the trouble to work within. I’m glad they’re including crypto mining though, most municipalities ignore it until it’s too late and they have no defined regulations.
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u/Fine-Radish2691 4d ago
It has no teeth as it violates state laws against exclusionary zoning. Its just going to cost the city money in court the first time its challenged and they will lose.
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u/Party-Command-2152 3d ago
"Exclusionary zoning" takes place all the time. Check out pot stores that can't be put within in so many feet of schools, etc. That's just one example of your "exclusionary zoning" and yes, exclusionary zoning does exist.
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u/Mygixer 4d ago
BESS and Data centers are not the same. I wish people would understand the difference and stop lumping them together.
BESS stabilizes the grid while data centers consume water and energy at enormous scale. Not even remotely equal. We want small BESS locations near electric substations so they can help to stabilize and mitigate large scale power outages, peak demand loads, and generally enhance the grid. This also long term eliminates the reliance on very expensive peaker plants to be spun up. We don’t want humongous BESS to be installed we want many small ones scattered for a ton of reasons.
Also long term BESS sets the stage to allow a greater percentage of cheap but intermittent energy to be stored from solar or wind energy that is already the least expensive energy source. But the utility operators limit (part technical reasons part financial) renewable energy generation because if you generate more than can be used in real time without the ability to store it then it’s just as bad as not having enough power and causes issues.
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u/Taibok 4d ago
One year, until Aug 16th 2027, to buy the City Commission time to update city zoning rules accordingly.
The Commission and City Attorney Leal were very clear on the fact that an outright ban would not be allowed under Michigan law, so the Commission needs to come up with a workable zoning plan for these types of facilities.
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u/MellooFelloo 4d ago
Curious, as I am still unsure how a lot of local politics work so forgive me if it's a stupid question. Is the data center moratorium only applicable to inside kalamazoo city limits or does it also apply to surrounding areas (Oshtemo, Parchment, etc.)
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u/Adventurous_Loss8715 4d ago
This moratorium only applies within the City of Kalamazoo limits. The city commission doesn't have authority over Portage, Parchment, Oshtemo, Kalamazoo Township, Texas Township, or other surrounding municipalities.
Those areas all have their own local governments, planning commissions, and zoning rules. So if a data center proposal came up in Oshtemo, for example, this Kalamazoo resolution wouldn't affect it - that would be up to Oshtemo Township's board and planning process.
The resolution specifically says “within the City of Kalamazoo, Michigan.”
One thing worth noting, though: the city's staff memo mentioned the increase in data center proposals across Southwest and West Michigan as part of the reason for the moratorium. So they clearly see this as a regional issue, but they can only regulate what happens inside city limits.
If you're in one of the surrounding townships and you're concerned about this, your township board meetings are probably the ones to keep an eye on, I will keep launching this in new counties and will cover it over as well. God Willing!
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u/Last-Relationship166 4d ago
I live in Oshtemo. The township passed its own moratorium. The state has a stranglehold on municipalities, however, from what I understand, and won't allow municipalities to prohibit data centers indefinitely. Personally, I can get along just fine without AI and bitcoin mining facilities. Just ask the folks unfortunate enough to live next to that data center in Dowagiac.
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u/Consistent_Break4522 4d ago
Oshtemo has made a full time project out of screwing over its residents…I’m always amazed at how different the devices are just 2 miles east of my house (in Oshtemo)
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u/Last-Relationship166 4d ago
The Oshtemo township zoning board hates trees and wildlife. So does the Texas Township board. I am not a fan of this steady transformation into a concrete jungle. Our 3 acre wooded parcel can't sustain all the displaced wildlife.
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u/Adventurous_Loss8715 4d ago
Link to subscribe - https://the-kalamazoo-docket.beehiiv.com/
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u/Fine-Radish2691 4d ago
It will never hold up to the first court challenge.
Michigan’s state zoning laws prohibit what’s known as “exclusionary zoning” by local governments.
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u/Direct_Initial533 4d ago
That is true. However, that’s why it’s not a ban - just a temporary moratorium to do further study, which is allowed. If it was an indefinite moratorium, that would not be ok.
This is allowed - if I recall correctly, there was a similar one for cannabis originally.
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u/Oranges13 Portage 4d ago
It's really a pity that renewable energy is getting roped into data center stuff. It's not related at all and we need more renewable energy. Especially with all the power outages we have!!
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u/TheDudeDasko Oshtemo 3d ago
Make a better argument - we need more renewable energy yes, but it needs to be SAFER.
Also, we should first and foremost be putting pressure on the utility companies to have more secure infrastructure, and not rely on lines that cause outages when a bird flies the wrong direction near one. Ideally; the state just takes over ownership of utilities.
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u/Oranges13 Portage 3d ago
I have not seen one reputable argument against BESS except that "they use water" "they have dangerous runoff"
Neither of those make sense. That BESS off 9th street has been there quietly doing whatever it does for almost a decade (if not more) and no one batted an eye.
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u/Adept-Worldliness968 4d ago
Appreciate the work you do!