Gilroy council approves temporary ban on new data centers

The Gilroy City Council unanimously enacted a temporary 45-day moratorium on new data center development, set to expire on October 29. This decision allows city staff to develop objective zoning, development, and operational standards for data centers, a process prompted by public criticism over the approval of an Amazon data center project without sufficient community input. While the existing Amazon facility at 8050 Camino Arroyo, which is already under construction, is exempt from the ban, a second pre-application data center project at Highway 152 and Camino Arroyo is halted.

Mayor Greg Bozzo stated that the moratorium is a direct response to residents' demands for more engagement in project reviews, aiming to improve future application processes. The move follows accusations by residents that the land for the Amazon data center violated the California Subdivision Map Act, although city officials found no such violation. In response to the lack of public input, the council also approved changes to project approval procedures, including mandatory community meetings for large commercial developments and expanded notification requirements for nearby residents.

The city currently lacks specific land use definitions or development standards for data centers, leading to concerns about impacts such as water consumption, electrical grid strain, and backup generator emissions. Councilmember Terence Fugazzi expressed hope that the moratorium would facilitate a thorough review of this industrial use and lead to the establishment of "reasonable and workable standards" within the city code. Britt Smith, founder of the Gilroy Community Action advocacy group, affirmed her group's intent to push for a full two-year extension of the moratorium and is working on a ballot initiative to require public votes on industrial facilities that consume disproportionate public resources. Amazon has stated its commitment to local conservation, water replenishment, 100% carbon-free energy, and using 100% recycled water by 2030 for its data center.