California cities move to restrict battery storage and data centers

Local governments in California are implementing measures to restrict the development of battery energy storage systems and data centers.

In Morro Bay, the City Council is planning to pass an ordinance to ban battery storage plants that supply power to the state’s electric grid. The move follows years of opposition from residents concerned about public safety, tourism, and the fishing industry. The proposal targets a 600-megawatt facility planned by Vistra Energy. While state legislation allows some projects to bypass local approval, they still require authorization from the California Energy Commission and the California Coastal Commission. The Coastal Commission has previously raised concerns regarding flooding, sea-level rise, and environmental impacts at the proposed site.

In Morgan Hill, the City Council voted unanimously to extend a moratorium on new land use applications for freestanding data centers and grid-scale battery energy storage systems. The extension, which lasts for 22 months and 15 days, is the maximum allowed under state law. The moratorium aims to provide city staff with time to develop comprehensive policies for these facilities. The decision faced opposition from several trade unions, including UA Local 393 and IBEW Local 332, who argued that the pause denies skilled laborers lucrative job opportunities in high-tech infrastructure.