When Amazon chose Gilroy for a $2 billion data center investment, we made a commitment to this community. We’ve heard your questions about what our project means for Gilroy’s residents, farmers and families. Here are answers to your most frequent questions.
How much water will the data center use?
We understand the importance of clean, abundant water for Gilroy’s residents and farmers. That’s why we designed our data center to use as little water as possible.
Our two-building campus will use water for cooling on the hottest days of the year—roughly 3% of the time. This approach helps lower power demand by 25-35% when the grid is most stressed.
Over the course of the year, the entire campus will use about 4 million gallons of water, which is roughly equivalent to the water used by 36 households.
Amazon is also funding new infrastructure to transition the water we use for cooling to 100% reclaimed (or recycled) water by 2030. For the 97% of the year when Amazon is not using water for cooling, the City of Gilroy will be able to use this infrastructure to provide expanded access to reclaimed water for residents, businesses and farmers at no additional cost.
Separate from our data center campus, Amazon is funding an irrigation efficiency project in Gilroy with Optama, expected to reduce irrigation water use by up to 50% compared to conventional methods and deliver water savings within the Llagas Subbasin.
Will the data center increase my electricity bill?
Amazon works closely with electric utilities to cover the full cost to power our data centers. Through a collaboration with PG&E, we are fully funding the transmission infrastructure needed for our data center. This infrastructure benefits all users.
We are also coordinating with Silicon Valley Clean Energy to purchase 100% carbon-free electricity.
We understand the concerns about rising electricity costs. But data centers can be part of the solution. Increased demand from large-load customers can help lower prices for everyday consumers by spreading the fixed costs of modernizing the grid across a bigger customer pool.
Indeed, PG&E has stated that each new gigawatt of data center demand could reduce its customers’ average monthly electricity bill by 1% or more.
In addition, an independent review that included analysis of PG&E territory confirmed that Amazon fully covers its own utility costs. In some cases, we contribute more than our costs, creating a surplus that utilities can reinvest in grid improvements or use to lower residential rates.
How does this project benefit residents of Gilroy?
Our $2 billion investment will diversify the local economy and generate tangible benefits, including an expected $532 million in gross domestic product, about 90 on-site jobs and an additional 160 full-time jobs in the broader community, and tens of millions of dollars in local tax revenue over the coming decade to support schools, fire departments and other public services.
Our goal is to be a force for good in the community. Since 2023, we have invested $310,000 in local grants to support 38 projects across Gilroy that community members identified as pressing needs.
This is also our third year working with the Gilroy Unified School District to support Girls Tech Day, an annual event that helps young women build confidence and skills in STEM fields.
These are just a few of the ways we are investing in Gilroy and we’re committed to being a long-term partner in the community’s future.
You can learn more about the data center on the Gilroy Chamber of Commerce’s project website: awsgilroy.wpenginepowered.com/. On June 3, we will be hosting an open house at Gilroy High School from 5-8pm, where residents can meet our project team, ask questions and see what we’re building. We hope you’ll join us.
Roger Wehner is Vice President of Economic Development for Amazon Web Services.
