Morgan Hill declares moratorium on data centers, battery storage sites
The Morgan Hill City Council has unanimously enacted a 45-day moratorium on new data centers and battery storage facilities. This temporary ban allows city staff time to draft specific zoning rules to manage potential impacts on public utilities, infrastructure, and the environment. The decision follows public concern stemming from a data center approval in the neighboring city of Gilroy that bypassed extensive public review.
The Morgan Hill City Council recently voted unanimously to implement a 45-day moratorium on new data centers and grid-scale battery energy storage facilities. This decision provides city staff with crucial time to develop comprehensive zoning rules before any such projects can be proposed within city limits.
Development Services Director Jennifer Carman highlighted that Morgan Hill currently lacks specific zoning standards for these types of facilities. She warned that without clear regulations, the city's current interpretation—that neither use is allowed—could be legally challenged. The moratorium is intended to protect public interest, health, safety, and welfare by addressing potential significant demands on public utilities and infrastructure, as well as unforeseen environmental and land-use impacts.
The urgency of the moratorium was partly influenced by growing public outrage in the neighboring city of Gilroy. There, an Amazon Web Services data center project was approved using outdated zoning rules, which allowed it to bypass a City Council vote or Planning Commission hearing, sparking controversy. Morgan Hill officials noted that the city's industrial zones are often close to residential neighborhoods, making the potential impacts of such developments particularly sensitive. Under state law, this initial 45-day moratorium can be extended for up to two years.