Gilroy: City Pauses New Data Center Projects With 45-Day Moratorium
Gilroy, California has enacted a 45-day moratorium on new data center applications. The move comes as the city studies potential new rules regarding data center development, driven by resident concerns and a possible second Amazon data center project. This moratorium does not affect an already approved and under-construction Amazon facility.
The City of Gilroy, California, has unanimously approved an emergency 45-day moratorium on new data center applications, effective immediately. This decision will prevent the city from accepting, processing, or approving new applications, with the possibility of extensions for up to two years under state law.
The moratorium was enacted as the City Council plans to study and develop new rules concerning the location, construction, and operation of data centers. Key issues under review include water use, cooling systems, electricity demand and grid capacity, noise, aesthetic appearance, and emissions from backup generators. Mayor Greg Bozzo stated that the city is responding to residents' requests for a greater voice in major development decisions.
This action follows growing community concerns, particularly regarding an Amazon Web Services Gilroy Data Center approved in July 2025, which began construction in September. Residents have also expressed dissatisfaction over perceived lack of transparency regarding this project's administrative approval. While Amazon has submitted a pre-application for a potential second data center, the moratorium does not impact the existing approved and under-construction facility.