Gilroy considers moratorium on new data centers
The Gilroy City Council is scheduled to consider a temporary citywide moratorium on new data center developments due to local residents' concerns about land, energy, and water usage. If approved, the ordinance would immediately pause new applications while the city develops updated standards for future projects. An existing Amazon data center project in northeast Gilroy, already approved and under construction, would not be affected.
The Gilroy City Council is set to deliberate on a temporary citywide moratorium impacting new data center developments, particularly those associated with artificial intelligence companies. This urgency ordinance, if approved at the Sept. 14 meeting, would immediately halt new data center development applications. The pause is intended to allow the city to develop new standards addressing aspects like building appearance, height, and consumption of energy and water.
Mayor Greg Bozzo acknowledged community concerns, stating, "Community members have raised important questions and concerns about how Gilroy should evaluate projects of this size and intensity in the future, and we are taking that feedback seriously." He added that the temporary pause would facilitate a careful review of current standards and propose changes for public discussion.
Local residents have voiced apprehension regarding the substantial land, energy, and water demands of large-scale data centers. While the proposed moratorium would affect future projects, an Amazon data center already approved and under construction in northeast Gilroy would be exempt. City officials have stated that Amazon is funding a dedicated electrical substation for its project, which will connect directly to a regional grid, ensuring its power demand does not compete with the community's local electricity supply. This initiative follows other recent changes approved by the City Council in response to public participation concerns.