Gilroy Extends Moratorium on New Data Center Projects
The Gilroy City Council unanimously extended the city’s temporary moratorium on new data center projects through Sept. 3, 2027, while staff develop data center-specific zoning and operating standards. The moratorium pauses a proposed second project but does not apply to Amazon’s data center already under construction, and residents continue to press for stronger oversight.
Gilroy City Council members unanimously extended the city’s temporary ban on new data center projects for more than 10 months, with the moratorium now set to expire Sept. 3, 2027. City Administrator Matt Morley said the additional time will allow staff to develop zoning, development and operational standards addressing electricity demand, water use, generator emissions, noise, traffic and infrastructure impacts.
The moratorium halts a proposed data center near Highway 152 and Camino Arroyo because the city has not received a formal application, but it does not affect Amazon’s data center under construction on a 56-acre site at 8050 Camino Arroyo. Residents supported the extension while expressing concern about the city’s relationship with Amazon Web Services and the need for meaningful community input. Mayor Greg Bozzo said the pause will give the city time to review the project and establish standards before considering future applications.