Gilroy to vote on pausing new data center development

Gilroy to vote on pausing new data center development

News ClipNBC Bay Area·Gilroy, Santa Clara County, CA·9/14/2026

The Gilroy City Council is scheduled to vote on a temporary citywide moratorium on new data center development due to concerns about noise, electricity, and water usage. If approved, the pause would allow the city to update its regulations for large industrial projects. An existing Amazon data center project in Gilroy would not be affected.

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Amazon
Gov: Gilroy City Council, Hayward City Council

The Gilroy City Council is set to vote on Monday night regarding a proposed temporary ban on new data center development within the city. This moratorium, if enacted, would halt new data center applications, allowing the city to re-evaluate and enhance its existing regulations for future large industrial projects.

Concerns driving this proposal include the substantial size and potential noise generated by data centers, as well as their significant consumption of electricity and water for cooling, which can strain local utility systems. Gilroy Mayor Greg Bozzo stated that community members have raised critical questions about how such large and intense projects should be evaluated, and the city intends to seriously consider this feedback.

Mayor Bozzo added that the temporary pause would provide an opportunity to scrutinize current standards, identify areas for improvement, and present proposed changes for public discussion. Notably, the proposed ban would not impact the controversial $2 billion Amazon data center already under construction in Gilroy. This development comes as the Hayward City Council, another Bay Area city, is also considering similar restrictions following considerable public opposition from its residents.