Gilroy extends moratorium on data center projects
The Gilroy City Council unanimously extended the city’s moratorium on new data center projects for more than 10 months, through Sept. 3, 2027. The pause allows city staff to develop zoning and operating standards addressing electricity demand, water use, emissions, noise, traffic and infrastructure, while an Amazon data center already under construction is exempt.
Gilroy City Council members unanimously extended a temporary moratorium on new data center projects through Sept. 3, 2027, with the possibility of another 12-month extension. City Administrator Matt Morley said the additional time is needed to develop objective zoning, development and operating standards, with public hearings and community input planned before the moratorium expires.
The ban halts a proposed second data center at Highway 152 and Camino Arroyo, which remains in the pre-application stage, but 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 future relationship with Amazon and the project’s potential effects on electricity demand, water consumption, generator emissions, noise, traffic and neighborhood quality of life. Amazon has said it is investing in conservation and water-replenishment efforts, will use carbon-free energy and plans to use fully recycled water by 2030.