City council extends Morgan Hill’s moratorium on data centers
The Morgan Hill City Council unanimously extended the city’s moratorium on new freestanding data center and grid-scale battery storage applications for up to 22 months and 15 days. Supporters said the extension will give staff time to develop rules addressing water use, power demand, noise, air quality and fire safety, while trade unions opposed it over potential impacts on construction jobs.
The Morgan Hill City Council voted unanimously Oct. 21 to extend its moratorium on new land-use applications for freestanding data centers and grid-scale battery energy storage systems. The interim ordinance prevents the city from accepting or approving applications while staff develops permanent regulations, and the moratorium will be repealed once those rules are adopted.
Development Services Director Jennifer Carman said staff hopes to complete the policy sooner than the maximum extension period. Mayor Mark Turner said the pause would provide time for community and labor discussions and emphasized that the city was not imposing a permanent ban. Representatives of UA Local 393, Sheet Metal Workers Local 104 and IBEW Local 332 opposed the extension, citing lost construction and apprenticeship opportunities, while other speakers called for studies of water use, electricity demand, noise, air quality and fire safety.
The moratorium followed controversy over an Amazon data center in neighboring Gilroy that received approval under outdated regulations with limited public involvement. Gilroy has also adopted a data center moratorium, though it does not affect the Amazon project already under development.