At our Sept. 14 meeting, the Gilroy City Council unanimously approved a temporary citywide moratorium on new data centers.
This action immediately paused the acceptance, processing and approval of new data center applications while the city and community take a closer look at the rules and standards that should govern this type of development in the future.
“Why now?” was a question the Council heard several times at the meeting.
The answer is simple: We have heard from Gilroy residents. That feedback is helping shape significant changes to how the city handles large development projects, including data centers.
Over the past several months, community members have raised questions and concerns about the Amazon data center now under construction in northeast Gilroy. That discussion also highlighted opportunities to improve how the city reviews large development projects and how residents learn about and participate in those decisions.
Community feedback has led to broader changes already underway at City Hall. The moratorium is an important part of that effort.
During this pause, city staff, led by the Community Development Department and the Planning Commission, will study and recommend zoning, siting, development and operational standards for future data center development. Under state law, the Council may extend the moratorium if additional time is needed, for a maximum total period of two years.
The moratorium does not affect the Amazon data center already approved and under construction in northeast Gilroy.
However, while the moratorium is in effect, the city will not move applications for any new data center forward through the review process.
Gilroy’s current zoning code does not define a data center as its own distinct land use. Instead, data centers are included within the broader category of data processing. The city also does not have a separate set of standards written specifically for the scale and impacts of modern data centers.
The work ahead is intended to address that.
Through this process, the city expects to study a wide range of issues associated with data centers, including water use and cooling technology, electrical demand and grid capacity, backup generators and emissions, noise, aesthetics and screening, traffic and other potential impacts.
Community input will be an important part of this process as the city develops the proposed data center standards and brings them forward for Planning Commission and City Council review.
One point I would like to emphasize: This moratorium is directly connected to broader changes in how Gilroy handles major development projects. In August, the City Council approved new requirements intended to increase public awareness and opportunities for community input on large commercial and industrial projects.
Those changes include expanded notification and community engagement requirements and Planning Commission review for projects requiring an Environmental Impact Report.
Our intent is not to discourage or hinder businesses from investing in Gilroy. In fact, we welcome and encourage businesses that drive economic development.
But to do that effectively, the city must establish clear rules, apply them consistently and ensure that residents have opportunities to participate as major projects are considered.
Taken together, these efforts will help ensure that Gilroy’s next chapter will be shaped by meaningful input from our community.
Greg Bozzo is the Mayor of Gilroy.
The City has had a the pre-application for a 2nd Amazon data center since April 24, 2026 according to CDD Sharon Goie. Yet the City refuses to answer why it became an urgency to implement a data center moratorium in September, 5 months later? We asked but they won’t answer. Could it be because 3 independent news sources wrote about how Gilroy facilitated an illegal subdivision of the data center property last week? Do people really think data centers are going to be flocking to Gilroy to build a new data center when there is no current recycled water infrastructure available until 2030 and the people are outraged at the way the current data center was approved by the city?