City Council extends Gilroy’s moratorium on data centers
The Gilroy City Council unanimously extended the city’s temporary moratorium on new data centers by 10 months and 15 days, through Sept. 3, 2027. The pause gives city staff time to develop data center standards addressing electricity demand, water consumption, emissions, noise, traffic and neighborhood impacts, but it does not affect Amazon’s data center already under construction.
The Gilroy City Council unanimously extended its temporary moratorium on new data centers for 10 months and 15 days, setting an expiration date of Sept. 3, 2027. The moratorium prevents the city from accepting, processing or approving applications for new data center facilities while staff evaluate regulations for the industry.
City officials said the review will address electricity demand, water use, backup-generator emissions, noise, traffic and neighborhood impacts. The action follows community concerns about an Amazon data center under construction on Camino Arroyo, though that project was approved in 2025 and is exempt from the moratorium. Gilroy is also preparing a broader zoning-code update and plans to seek public input before new standards are considered by the planning commission and City Council.
The council previously approved additional public outreach and planning commission review for projects requiring an environmental impact report. Nearby Morgan Hill has taken similar action, approving and later extending its own data center moratorium.