Gilroy City Council approves temporary moratorium on new data centers

News Clip1:42NBC Bay Area·Gilroy, Santa Clara County, CA·9/15/2026

The Gilroy City Council unanimously approved a 45-day temporary moratorium on new data center projects due to community concerns over water and electricity usage. This ban allows the city time to establish objective zoning and operational standards for future developments. An Amazon data center currently under construction is not affected by this moratorium.

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Gov: Gilroy City Council, City of Gilroy

The Gilroy City Council unanimously passed a 45-day temporary moratorium on future data center projects, effective immediately. This decision follows months of significant community outrage and concerns regarding a large Amazon data center already under construction in Gilroy, which residents say was approved without public input.

NBC Bay Area's Jocelyn Moran reported live from Gilroy, highlighting the community's worries about the high water usage and electrical costs associated with these facilities. City council members indicated their expectation that the moratorium would be extended beyond 45 days. This extension would provide them ample time to gather public input, conduct research, and determine if existing standards and regulations for data centers in Gilroy need to be strengthened.

The moratorium will not impact the Amazon data center already under construction. However, it will affect any new formal applications for data centers from this point forward, including a pre-application for a second data center the city had received.

The council's decision brought a sense of relief to residents who had been vocal about their concerns, feeling it was a victory, at least for now. They also expressed hope that other cities in the Bay Area would take notice of Gilroy's actions.