Amazon to host open house on Gilroy data center project

Amazon Web Services (AWS) is hosting a public open house in Gilroy on June 3 to address community questions and provide information about a large data center currently under construction. The project, located on Arroyo Circle, has already secured approvals and permits but faces considerable local opposition regarding its environmental impact, particularly concerning water and energy usage.

According to city officials and AWS, the project has completed a full environmental review under the California Environmental Quality Act, with analyses confirming that Gilroy's infrastructure can support the facility's demands, especially with planned upgrades. AWS is reportedly constructing infrastructure for recycled water delivery to minimize reliance on potable water, and air quality studies suggest emissions will remain below Bay Area Air Quality Management District thresholds.

Despite these assurances, the data center has become a point of contention among residents concerned about the growth of energy-intensive cloud and AI data centers. Landon Sepulveda, a lead organizer for opponents, voiced demands for clarity on potable water reliance, potential AI operations, details on a proposed second phase, and contingency plans for droughts. Residents also expressed concerns about the anticipated 98-megawatt electricity demand, potential utility cost increases, noise, and fire risks from battery storage.

While supporters highlight increased property tax revenue, infrastructure investment, and job creation, critics, including Sepulveda's group, are advocating for a ban on future data centers in Gilroy. They also seek independent third-party monitoring, legally binding agreements to limit the current project's expansion, and guarantees against utility bill spikes. Roger Wehner, AWS Vice President for Economic Development, emphasized Amazon's long-term commitment to the community and views the open house as an opportunity for direct engagement.