Gilroy approves temporary freeze on new data centers

Gilroy approves temporary freeze on new data centers

News ClipThe Mercury News·Gilroy, Santa Clara County, CA·9/15/2026

The Gilroy City Council has approved a temporary moratorium on new data centers in the city, effective immediately for at least 45 days. This decision follows community opposition to a large Amazon data center already under construction, which will not be impacted by the freeze. The moratorium aims to allow the city time to develop comprehensive new standards for future data center development, addressing concerns like water use, electricity, noise, and pollution.

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Amazon
Gov: Gilroy City Council, Gilroy

The Gilroy City Council unanimously approved a temporary moratorium on new data centers within the city, effective immediately for a minimum of 45 days. This decision was a direct response to significant community opposition regarding a large Amazon data center currently under construction on the city's northeastern edge. Mayor Greg Bozzo emphasized that residents sought a greater voice in major development decisions, and the council's action provides time to establish appropriate standards for future data center projects.

While the existing Amazon facility, which was already zoned for heavy industrial use, will not be affected, the moratorium will prevent the city from accepting, processing, or approving new data center applications and entitlements. This temporary freeze specifically impacts a potential second data center that Amazon was reportedly considering in Gilroy. The city plans to evaluate various factors, including water use, electrical demand, noise, and pollution, as it develops a more comprehensive zoning code, as data centers are currently broadly classified under "data processing establishments." The moratorium has the potential to be extended for up to two years.